Supply, Demand, and Supply and Demand
Graph 1
1. David wants to buy seven coffees.
2. The more he buys, the more he get profits from it.
3. It would maybe raise up to 12%.
4. He can replace other expensive items for the coffee he bought.
5. The change in demand may change because the substitution prices may change, David's income may have changed, or his attitude and expectations may have changed.
6. The three reasons are; changes on the stuff like, their income changes, and also the price of the product.
Graph 2
1. The change in the quantity demand is that Starbucks would have to lower their price./font>
2. It might increase because people who pick the beans and who manufacture it have to make more money.
Graph 3
1. The equilibrium point is 9.
2. The equilibrium price will go up.
3. The price will go down.
4. When it increases the price will go down.
5. When it decreases the price will go up.
6. If CA increases the tax on coffee, then Starbucks will have to raise up the price on their coffee.
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