Now suppose that the avocado oil (Question 1) increases in popularity, and the buyers are willing to
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Now suppose that the avocado oil (Question 1) increases in popularity, and the buyers are willing to buy an
additional quantity of 10000 units per month at each price level indicated in the table. At the same time, as a
result of improved technology, oil producers are willing to produce 30000 units more per month at each price
level.
a. Fill in the columns of the Table below (8 marks)
b. What is the new equilibrium price and new equilibrium quantity? (2 marks)
c. On the same graph as Question 1, show the new demand curve, the new supply curve, new equilibrium
point, new equilibrium price and new equilibrium quantity.
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