Plot the market demand and market supply curves for above data. a) What is the equilibrium price and quantity? Label equilibrium price (Pe) and equilibrium quantity (Qe). b) If the market price is at $80, will there be surplus or shortage? How much? c) How big is the surplus or shortage if the price is $80 higher than the equilibrium price?
Plot the market demand and market supply curves for above data. a) What is the equilibrium price and quantity? Label equilibrium price (Pe) and equilibrium quantity (Qe). b) If the market price is at $80, will there be surplus or shortage? How much? c) How big is the surplus or shortage if the price is $80 higher than the equilibrium price?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter5: Supply, Demand, And Price: Applications
Section: Chapter Questions
Problem 5WNG
Related questions
Question
quantity demand consumer A (units) | quantity demand consumer B (units) | Quantity supplied seller 1 (units) | Quantity supplied seller 2 (units) | |
200 | 200 | 150 | 330 | 240 |
160 | 220 | 180 | 180 | 230 |
120 | 250 | 200 | 230 | 220 |
80 | 260 | 240 | 180 | 210 |
40 | 290 | 260 | 130 | 200 |
questions:
Plot the market demand and market supply
a) What is the
equilibrium quantity (Qe).
b) If the market price is at $80, will there be surplus or shortage? How much?
c) How big is the surplus or shortage if the price is $80 higher than the equilibrium price?
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