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The following table shows the market demand and supply schedules for cups of coffee at the Campus Coffee Shop. Graph the demand and supply
The following table shows the market demand and supply schedules for cups of coffee at the Campus Coffee Shop. Graph the demand and supply curve and find the equilibrium price and equilibrium output. Quantity Supply Demand 0 $0.00 $3.00 1,000 0.50 2.00 2,000 1.00 1.00 3,000 1.50 0.00 4,000 2.00 0.00 5,000 2.50 0.00 a. At equilibrium price, graphically show consumer surplus, producer surplus, total surplus. b. If government imposed a quota on the Campus Coffee Shop such that they could not sell more than 1,000 cups of coffee, what will be the new price and output at the shop? How will the quota affect consumer, producer, and total surplus? c. If the government imposed a $ 0.50 price ceiling in the market for coffee, what will be the new price and output at the Campus Coffee Shop? How will the price ceiling affect consumer, producer and total surplus? d. If the government imposed a $ 2 price floor in the market for coffee, what will be the new price and output at the Campus Coffee Shop? How will the price floor affect consumer, producer and total surplus? e. If the government imposed a $ 0.50 tax/unit levied on the supplier in the market for coffee, what will be the new price and output at the Campus Coffee Shop? How will tax levied on the supplier affect consumer, producer and total surplus? f. If the government imposed a $ 0.50 tax/unit levied on the buyer in the market for coffee, what will be the new price and output at the Campus Coffee Shop? How will tax levied on the buyer affect consumer, producer and total surplus?
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