draw a curve that shows the effect of a new dip that increases the quantity of potato chips that people want to buy by million bags per week at each price. label the curve potato chips

Demand for potato chips increases when the new dip is released on the market. However, it has no impact on supply. The demand curve consequently moves to the right.

The weekly increase in demand is 40 million bags. A rightward shift occurs in the demand curve. The new equilibrium quantity is 165 million bags each week, and the new equilibrium price is 85 cents per bag.

The new dip in the market for potato chips has two effects: it raises supply and demand for the snack food.

What is the Demand curve ?

The relationship between the cost of an item or service and the quantity demanded over a specific time period is represented graphically by the demand curve.
The law of demand states that as the price of a given good rises, the quantity demanded decreases, all other things being equal. This is expressed by the demand curve moving downward from the left to the right.

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