Draw the initial demand and supply curves

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Reference no: EM131346658

Suppose that the quantity demanded rises by 40 million packs of gum per month at each price.

Draw the initial demand and supply curves as given by the table above. Call this graph Graph 1.

Label this demand curve D1, and this supply curve S1. Draw the new demand curve given by this change, labeling it D2. Show the new equilibrium price and output, labeling this point A.

Reference no: EM131346658

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