1. a) Copy Figure 4.10 (below) into your notebook and fill in the Surplus/Shortage column. What is the equilibrium price? b) Draw a demand and supply graph for this information. Shade in the area that represents a surplus in this market and the area that represents a shortage when market prices of $1.80 and $1.00 are considered.
1. a) Copy Figure 4.10 (below) into your notebook and fill in the Surplus/Shortage column. What is the equilibrium price? b) Draw a demand and supply graph for this information. Shade in the area that represents a surplus in this market and the area that represents a shortage when market prices of $1.80 and $1.00 are considered.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Could you help me with question 1.
![Check Your
Understanding
1. a) Copy Figure 4.10 (below) into your notebook
and fill in the Surplus/Shortage column. What
is the equilibrium price?
2. Economists are not generally supportive of
governments interfering in markets in order to
set prices. Using the example in question 1,
explain what undesirable results might occur
if the school simply declared a price for
cafeteria foods.
b) Draw a demand and supply graph for this
information. Shade in the area that represents
a surplus in this market and the area that
represents a shortage when market prices of
$1.80 and $1.00 are considered.
Quantity
Surplus/
Quantity
Demanded
Price
Supplied
Shortage
$2.00
100
190
$1.80
120
180
$1.60
140
170
$1.40
160
160
$1.20
180
150
$1.00
200
140
$0.80
220
130
Figure 4.10 Demand and supply for hot dogs in a school cafeteria.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd07ffb5-13a4-4a86-83ff-1b1e2bdeca3c%2F29af9353-7589-42c3-905a-252102782ca9%2Fmzx73gf_processed.png&w=3840&q=75)
Transcribed Image Text:Check Your
Understanding
1. a) Copy Figure 4.10 (below) into your notebook
and fill in the Surplus/Shortage column. What
is the equilibrium price?
2. Economists are not generally supportive of
governments interfering in markets in order to
set prices. Using the example in question 1,
explain what undesirable results might occur
if the school simply declared a price for
cafeteria foods.
b) Draw a demand and supply graph for this
information. Shade in the area that represents
a surplus in this market and the area that
represents a shortage when market prices of
$1.80 and $1.00 are considered.
Quantity
Surplus/
Quantity
Demanded
Price
Supplied
Shortage
$2.00
100
190
$1.80
120
180
$1.60
140
170
$1.40
160
160
$1.20
180
150
$1.00
200
140
$0.80
220
130
Figure 4.10 Demand and supply for hot dogs in a school cafeteria.
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