Could you help me with question 1. Check YourUnderstanding1. a) Copy Figure 4.10 (below) into your notebookand fill in the Surplus/Shortage column. Whatis the equilibrium price?2. Economists are not generally supportive ofgovernments interfering in markets in order toset prices. Using the example in question 1,explain what undesirable results might occurif the school simply declared a price forcafeteria foods.b) Draw a demand and supply graph for thisinformation. Shade in the area that representsa surplus in this market and the area thatrepresents a shortage when market prices of$1.80 and $1.00 are considered.QuantitySurplus/QuantityDemandedPriceSuppliedShortage$2.00100190$1.80120180$1.60140170$1.40160160$1.20180150$1.00200140$0.80220130Figure 4.10 Demand and supply for hot dogs in a school cafeteria.

Question 1's solution is given below

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.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 21P

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