QUESTION 5 This question is worth ten marks The demand and supply schedules for potato chips are: Price QD QS (mil bags/week) (cents per bag) (millions of bags/week) 50 160 130 60 150 140 70 140 150 80 130 160 90 120 170 100 110 180 a. Draw a graph of the potato chip market and mark in the equilibrium price and quantity. b. If the price is 60 a bag, is there a shortage or a surplus, and how does the price adjust? Suppose a new dip increases the quantity of potato chips that people want to buy by 30 million bags per week at each price. a. Does the demand for chips change? Does the supply of chips change? Describe the change. b. How does the market equilibrium change? c. If a virus destroys potato crops and the quantity of potato chips produced decreases by 40 million bags a week at each price, how does the supply of chips change? d. If the virus hits just as the new dip comes to the market, how do the equilibrium price and quantity of chips change