Question

Suppose the market for frozen orange juice is in equilibrium at a price of $1.00 per can and a quantity of 4200 cans per month. Now suppose that at a price of $1.50 per can, quantity demanded falls to 3000 cans per month. At the same time assume that at a price of $1.50 the quantity supplied increases to 4500 cans per month. Draw the appropriate diagram for this market.

Answer 1

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