Home » SUPPLY AND DEMAND QUESTIONS 1. Suppose that the price of sugar increases. What would happen to equilibrium price and quantity in the market for Kit

# SUPPLY AND DEMAND QUESTIONS 1. Suppose that the price of sugar increases. What would happen to equilibrium price and quantity in the market for Kit

SUPPLY AND DEMAND QUESTIONSExplain your answer by making references to a Supply & Demand Curves that you have drawn and their Equilibriums.2. Suppose that a company invents a better machine for mixing the ingredients to make chocolate candies, but the price of Cocoa rises while the price of sugar falls. What would happen to equilibrium price and quantity in the market for Milky Way chocolate?3. Suppose the equation for demand can be expressed as P = 120 –1.25Q (P = Price of a good and Q is the Quantity of the good demanded). The equation for supply can be expressed as P = 1.75Q.a. What is the Quantity Demanded at a Price of \$80? (Show All Your Work)b. Find the equilibrium price and quantity (Show All Your Work).

1. Sugar is an input into Kit Kat. As its price rises input costs rise, so that supply curve shiftsup to left. This causes price to rise and quantity to fall for Kit KatP SS2SS1 DDQ2. Let us…

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