Demand and Supply help???

  • Thread starter Thread starter Melanie M
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Melanie M

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Consider the following demand and supply information for banana’s In Australia in early springtime 2008
http://i299.photobucket.com/albums/mm307/miss-laila/table2.jpg

Situation
Ian Thorpe Breaks his fourth world record at the Beijing Olympics, gets out of the pool and eats a banana to refuel.

a) Graph the demand and supply schedules for bananas shown above. Draw a large set of axes with a quantity scale going up to 16000
b) After Thorpe’s actions, explain what is likely to happen to demand for banana’s
c) What is likely to happen to supply? Why? Are you sure about that

Let’s assume the change to quantity demanded shown in the table

http://i299.photobucket.com/albums/mm307/miss-laila/table1.jpg

d) What do you think is likely to happen to the equilibrium price?
e) Why may the quantity supplied remain the same in the short term?

f) Will the quantity of banana’s supplied increase in the future? How long do you think it will take? How could you increase supply faster?
 
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