14. The following problems are based on the demand and supply schedule for gum listed below. All quantities are in millions of packs of gum per month. Price Quantity Quantity (RM) Demanded Supplied (Million (Million pack) pack) 0.20 180 30 0.30 160 60 0.40 140 90 0.50 120 120 0.60 100 140 0.70 80 160 0.80 60 180 a. Suppose that the quantity demanded rises by 40 million packs of gum per month at each price. Draw the initial demand and supply curves as given by the table above. Call this graph Graph 1. Label this demand curve D1, and this supply curve S1. Draw the new demand curve given by this change, labeling it D2. Show the new equilibrium price and output, labeling this point A. b. Assume that the demand curve is now back at D1. Suppose that the quantity demanded falls, relative to the values in the table, by 50 million packs per month at prices between prices of RM 0.40 and RM 0.70 per pack; at prices of 80 or 90 cents per dozen, the quantity demanded becomes zero. On Graph 1, draw the new demand curve, labeling it D3. Show the new equilibrium price and output, labeling this point B. What does it mean to have a quantity demanded of 0 at prices of greater than RM 0.80 per pack? C. Suppose that the quantity supplied rises by 50 million packs per month at each price, while the quantities demanded retain their D1 values. On a new graph (labeled as Graph 2), draw D1, 51, and the new supply curve, $2. Show the new equilibrium output and price, labeling this point C. d. Suppose that the quantity supplied falls, relative to the values given in table ($1), by 80 million packs per month at prices $0.40 and above; at a price of RM 0.30 cents per pack and below, the quantity supplied becomes zero. On Graph 2, draw the new supply curve, $3, and show the new equilibrium price and quantity, labeling this point E. What does it mean to have a quantity supplied of 0 at prices of RM 0.30 and below