The following are the assumed supply and demand schedules for hamburgers in Collegetown:
a. Plot the supply and demand curves and indicate the equilibrium price and quantity.
b. What effect would a decrease in the price of beef (a hamburger input) have on the equilibrium price and quantity of hamburgers, assuming all other things remained constant? Explain your answer with the help of a diagram.
c. What effect would an increase in the price of pizza (a substitute commodity) have on the equilibrium price and quantity of hamburgers, assuming again that all other things remain constant? Use a diagram in your answer.
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