Use supply and demand curves to illustrate how the following event would affect the price of butter and the quantity of butter bought and sold.
Using the line drawing tool, show the effect of an increase in the price of milk in the market for butter illustrated in the figure to the right by drawing either a new supply or new demand curve. Label this curve appropriately: S^(') if a new supply curve, D^(') if a new demand curve.
Using the point drawing tool, identify the new equilibrium price and quantity. Label this point 'New Equillibrium'.
Carefully follow the instructions above, and only draw the required objects.
Use supply and demand curves to illustrate how the following event would affect the price of butter and the quantity of butter bought and sold
Market for Butter
Q
S
1 Using the line drawing tool,show the effect of an increase in the price of milk in the market for butter illustrated in the figure to the right by drawing either a new supply or new demand curve. Label this curve appropriately: S' if a new supply curve,D if a new demand curve.
Price
2 Using the point drawing tool, identify the new equilibrium price and quantity.Label this point'New Equillibrium'.
Carefully follow the instructions above, and only draw the reguired objects
D
Q1
Quantity