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Question: the demand graph for chocolate bars for country a is...

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The demand graph for chocolate bars for country A is given below 2.1 Draw a supply curve so that we have a market equilibrium where equilibrium price is S1.20 and equilibrium quantity is 300. Label this graph as SOSO and the market equilibrium as A 2.2. Suppose chocolate is an inferior good and there is an increase in consumer income. Draw a new demand curve given this change so that the new market equilibrium has price of $0.8 and quantity of 200. Mark this new demand curve as DIDI and label the new market equilibrium as B 2.3 Suppliers of chocolates discover a new technology which makes it less costly to make chocolate bars. Draw a new supply curve to indicate this change, drawing it in such a way so that the market equilibrium price now falls below $0.8 Label this supply curve as SISI (Note: for 2.3, you do NOT need to be accurate with numbers when drawing the new supply curve- as long as you can show market price will fall below $0.8 after this change, you will get full marks) 2.4 Identify whether the following factors will affect the demand or supply of chocolates in the market. Indicate HOW demand or supply will be affected (write INCREASE OR DECREASE) Factor Demand or Supply? Increase or Decrease? A new health study finds that it is beneficial for your heart to have 1 chocolate a day The government imposes a tariff which increases the price needs to be im of Cocoa which in A price of ice-cream which is a substitute of chocolates increases There is Valentines day coming up so suppliers anticipate price of chocolates will increase in the future
$2.00 $1.60 $1.20- $0.80 $0.40- 100 200 300 400 500 600 Quantity
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