Please do it 12.arket equibrium andThe following graph shows the monthly demand and supply curves in the market for shirts.Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.Graph Input ToolMarket for Shirts6054I Price(Dollars per shirt)Supply2448QuantityDemanded(Shirts)Quantity Supplied(Shirts)6004004236302418Demand12100 200 300 400 500 600 700 800 900 1000QUANTITY (Shirts)The equilibrium price in this market is $per shirt, and the equilibrium quantity isshirts bought and sold per month.Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus,and whether this places upward or downward pressure on prices.PriceShortage or Surplus Amount(Dollars per shirt)Shortage or Surplus(Shirts)Pressure4218PRICE (Dollars per shirt)

Answered: 12. arket equmbrium and The following…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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12.
arket equibrium and
The following graph shows the monthly demand and supply curves in the market for shirts.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
Graph Input Tool
Market for Shirts
60
54
I Price
(Dollars per shirt)
Supply
24
48
Quantity
Demanded
(Shirts)
Quantity Supplied
(Shirts)
600
400
42
36
30
24
18
Demand
12
100 200 300 400 500 600 700 800 900 1000
QUANTITY (Shirts)
The equilibrium price in this market is $
per shirt, and the equilibrium quantity is
shirts bought and sold per month.
Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus,
and whether this places upward or downward pressure on prices.
Price
Shortage or Surplus Amount
(Dollars per shirt)
Shortage or Surplus
(Shirts)
Pressure
42
18
PRICE (Dollars per shirt)

Expert Solution

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In economics, demand refers to the total amount of goods and services which all the consumers in the economy are willing and able to consume at a particular price during a specific period of time whereas the aggregate supply refers to the total quantity of goods and services which all these suppliers are willing to produce and offer for sale at a given price during a specific period of time. The aggregate demand and aggregate supply in the economy is represented by the demand curve and supply curve respectively. The point where both of these intersect is known as the equilibrium point.

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