D:P=(-1/400)Q+80S:P=(1/1200)Q+40

One of the reasons behind Switzerland's liberalization of the cheese market was the expected increase in the demand for their export cheese (growing Indian middle class and Chinese). So suppose that the above mentioned government price support programme is now removed (i.e., no market intervention by the government). But suppose also that the quantity demanded increases by 12,000 units at every price. (A1f) Find the values of new market equilibrium quantity and price. Draw the new demand function in the graph space given on the previous page. 4 marks