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The seller cost of food goes up from $1,500 to $1,700 per ounce. On the supply & demand diagram, the supply curve shifts up by
The seller cost of food goes up from $1,500 to $1,700 per ounce. On the supply & demand
diagram, the supply curve shifts up by $0.70 per point.
ii. The demand curve shifts up in response to CERB payments. With more income, food buyers are temporarily willing to pay more for food.
Assume that at the new equilibrium (the intersection of the upward-shifted supply and demand
curves), the price of opioids is $25 per point, and the equilibrium quantity is 280 points
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