eco

Name:______________________________________ Student ID:________________ Section:_______

MARKET EQUILIBRIUM WORKSHEET 3

Below, you are provided with the demand curve and supply curve for pineapples. You will use this diagram to identify the equilibrium price, and the quantity demanded and quantity supplied of pineapples at various prices below that equilibrium price. You will determine whether it is quantity demanded or quantity supplied that determines the quantity of pineapples bought and sold when the market price is below the equilibrium price.

P ri

ce

Quantity of Pineapples

600200 800 1,000400 1,200 1,400

$1

$2

$3

$4

$5

$6

$7

Demand

Supply

Part 1: What is the equilibrium price of a pineapple?

Part 2: At a price of $2 per pineapple, what is the quantity of pineapples demanded? The quantity of pineapples supplied?

Part 3: At a price of $2 per pineapple, how many pineapples are bought and sold?

Part 4: At a price of $3 per pineapple, what is the quantity of pineapples demanded? The quantity of pineapples supplied? Part 5: At a price of $3 per pineapple, how many pineapples are bought and sold?

©2018 Pearson Education, Inc.

Name:______________________________________ Student ID:________________ Section:_______

MARKET EQUILIBRIUM WORKSHEET 4

Below, you are provided with the demand curve and supply curve for apples. You will use this diagram to identify the equilibrium price, and the quantity demanded and quantity supplied of apples at various prices above that equilibrium price. You will determine whether it is quantity demanded or quantity supplied that determines the quantity of apples bought and sold when the market price is above the equilibrium price.

P ri

ce

Quantity of Apples

600200 800 1,000400 1,200 1,400

$1

$2

$3

$4

$5

$6

$7

Demand

Supply

Part 1: What is the equilibrium price of an apple?

Part 2: At a price of $2 per apple, what is the quantity of apples demanded? The quantity of apples supplied?

Part 3: At a price of $2 per apple, how many apples are bought and sold?

Part 4: At a price of $3 per apple, what is the quantity of apples demanded? The quantity of apples supplied? Part 5: At a price of $3 per apple, how many apples are bought and sold?

©2018 Pearson Education, Inc.

GAINS FROM TRADE

Cars Phones

United States 2 28

China 4 4

Per worker output for U.S. and China:

Suppose each country has 2,000 workers and at autarky, they are both using 1000 workers each for cars and phones. They now decide to trade with one another and the terms of trade is 2,000 cars for every 14,000 phones. Based on these information, fill in the following table.

Cars Phones

United States

China

Cars Phones

United States

China

Cars Phones

United States

China

Cars Phones

United States

China

Production before trade: Consumption before trade:

Production after trade: Consumption after trade:

DR. DHAKAL 1