Given the table, respond to the questions below. (attachment)

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This question deals with demand and supply and refers you to the table below:

a.

Given the table, respond to the questions below. It may be helpful to graph the data as you respond to the questions.

 

Price

Quantity Demanded/Month

Quantity Supplied/Month

$5

 6,000

10,000

$4

 8,000

 8,000

$3

10,000

 6,000

$2

12,000

 4,000

$1

14,000

 2,000

 

 

b.

What is the equilibrium price and equilibrium quantity?

c.

Suppose the price is currently at $5. What problem would exist in the economy? What would you expect to happen to price?

d.

Suppose the price is currently $2. What problem exists in the economy? What would you expect to happen to price?

    • 12 years ago
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