|
MARKET DATA
|
|
Price of tuna
|
$15.00
|
|
Quantity demanded
|
1129
|
|
Quantity supplied
|
3763
|
|
Excess demand
|
-2634
|
|
|
|
DEMAND DATA
|
|
Income
|
$20,000 |
|
Price of tacos
|
$6.00 |
|
Price of wine
|
$20.00 |
|
|
|
SUPPLY DATA
|
|
Price of sauce
|
$3.00 |
|
Price of labor
|
$5.00 |
|
Per unit tax
|
$0.00 |
1. Set the price of tuna to its equilibrium level. Now the price of tacos falls to $3. At the current price of spaghetti, supply changes by what?
2. Set the price of tuna to its equilibrium level. Govt grants a subsidy of $3 per plate. What's the change in price due to the subsidy.