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Below are the supply and demand schedules for fresh coffee in Vancouver:
Price ($/cup) Quantity Demanded
(cups/day)
Quantity Supplied (cups/day)
1 440 330
2 415 360
3 390 390
4 365 420
5 340 450
6 315 480
7 290 510
a. What is the equilibrium price of coffee?
a. How many cups of coffee will be exchanged at this price?
b. Using the information in the above table, graph (on graph paper) the demand and supply for coffee on the same graph. Indicate clearly on the graph the equilibrium price and quantity by drawing lines from the intersection of the supply and demand curves to the price and quantity axes.
c. Suppose that an increase in the population increases quantity demanded (at every price) by 110 cups per day. What is the new equilibrium price and quantity of coffee? Illustrate your answer on the graph you drew in part b.
d. Has there been a movement along or a shift of the demand curve? Has there been a movement along or a shift of the supply curve?
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