(a) suppose there exists a market for coffee that is in equilibrium at 500 cups brewed per week for $3/cup. now suppose the demand for coffee shifts outward (to the right). what are some reasons this shift might have occurred?
(b) now suppose that after the demand curve shifted, the supply curve shifts inward (to the left). what are some reasons this might have occurred?
(c) now that both the demand and the supply curves have shifted, compare the new equilibrium to the original equilibrium of 500 cups for $3 each. are the new equilibrium price and quantity greater than, less than, or equal to the original equilibrium? do you have enough information to know for sure?

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.