1. Assume the market for oranges initially has supply described by P=10+Q (with price measured in dollars per bag and quantity measured in millions of bags) and demand described by P=20 - Q. Assume a snow storm causes the supply curve to shift to the left such that supply becomes P=15+Q. Discuss how much will price rise by?
2. Assume the market for oranges initially has supply described by P=10+Q (with price measured in dollars per bag and quantity measured in millions of bags) and demand described by P=20 - Q. Assume a snow storm causes the supply curve to shift to the left such that supply becomes P=15+Q. Discuss how much will quantity decrease by?