The residents of the town of Stewart are well-known coffee drinkers. Dunkin Donuts and Starbucks stores supply the residents with over 100,000 cups of hot coffee per week. Recently, coffee drinkers started to complain about the quality of Starbucks coffee. They complained about extra bitter tastes and poorly prepared coffee and wrote on social media platforms that Baristas sometimes sell you warm coffee. As a result, coffee drinkers said they now prefer Dunkin coffee, that tastes better and is always hot.

  

1. Draw a demand and supply model of Starbucks and Dunkin coffee markets in Stewart. Use the model to illustrate the impact on the equilibrium price and quantity in each market of developments mentioned above.

 

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In the demand and supply model for Starbucks and Dunkin coffee markets in Stewart we can illustrate the impact of the developments mentioned above on ... View the full answer