Consider the Following Supply and Demand Diagram for Tootsie Rolls

question 4

Essay

Consider the following supply and demand diagram for Tootsie Rolls.Note that the market is currently in equilibrium,with a price of P* and a quantity exchanged of Q*. For each of the scenarios below,draw a picture that illustrates the impact on price and quantity exchanged.Explain each of your pictures by describing what is happening to the demand side of the market.
(a)The American Association of Chocolate Lovers designates the Tootsie Roll as its official candy.
(b)The Tootsie Roll Company computerizes their Tootsie Roll manufacturing plant,lowering unit costs of production.

---

Definitions:

Cut-off Frequency

The frequency at which the magnitude of a signal is reduced by a specific ratio, marking the boundary between passband and stopband in a filter’s performance.

Variable Capacitors

Capacitors whose capacitance value can be adjusted or varied, often used in tuning circuits or as part of frequency modulating systems.

Variable Inductors

Inductors whose inductance can be adjusted or varied, often used in radio equipment for tuning and filtering applications.

Tuning

The process of adjusting the frequency of a receiver to match the frequency of the desired signal.