Question: On 4 different graphs, illustrate what happens to equilibrium price and quantity in the market for orange juice when:
i) There is a freeze on orange groves
ii) Producers agree on an illegal price fixing scheme
iii) In a widely published article, it is found that Vitamin C definitely neutralize free radicals that can damage cells and tissues and lead to disease
iv) There is a pronounced decline in the unemployment rate
Give a rationale for your answer in each of the four cases above
Question . Supply, Demand, and Taxes
The market for tennis shoes exhibits the following supply and demand schedules:
P = 200 - 2Q
P = Q
i) Determine the equilibrium price and quantity in this market
ii) What would be the consumer and producer burdens of an excise tax of $5?