Principle of Microeconomics

1)The market for Pepsi is in equilibrium. The US decides to remove all restrictions on the importation of sugar, so the price of sugar falls by 50% in the US. Draw a Supply and Demand graph, properly labeled and show the initial situation and the situation after the new information is released on the same graph with arrows showing the direction of any change. Clearly state the impact on price and quantity. Only use one graph.

2)Boeing and Airbus operate in a Duopoly. Based on the table below what is the optimal decision for each firm on how many planes they should produce and why? What does this tell you?

Airbus's strategies 4 a week 3 a week 4 a week Boeing strategies 3a week