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Refer to the following supply and demand schedules for the market for yo-yos. Qs 10 Price Qd $1 $2 $3 $4 $5 100 80 35 60 60 40 85 110 20 1. What are the equilibrium price and quantity of yo-yos? 2. If price in the market is $2, will there be a surplus or shortage of yo-yos and how large will the surplus/shortage be? Show your work. 3. If price is $2, will price tend to increase, 4 LO %24

Refer to the following supply and demand schedules for the market for yo-yos. Qs 10 Price Qd $1 $2 $3 $4 $5 100 80 35 60 60 40 85 110 20 1. What are the equilibrium price and quantity of yo-yos? 2. If price in the market is $2, will there be a surplus or shortage of yo-yos and how large will the surplus/shortage be? Show your work. 3. If price is $2, will price tend to increase, 4 LO %24

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer #5 for me. Thanks
**Supply and Demand Analysis for Yo-Yos Market** **Table: Supply and Demand Schedules** | Price | Quantity Demanded (Qd) | Quantity Supplied (Qs) | |-------|------------------------|------------------------| | $1 | 100 | 10 | | $2 | 80 | 35 | | $3 | 60 | 60 | | $4 | 40 | 85 | | $5 | 20 | 110 | **Questions for Analysis:** 1. **Equilibrium Analysis**: What are the equilibrium price and quantity for yo-yos? 2. **Surplus/Shortage at $2**: If the market price is $2, will there be a surplus or shortage of yo-yos? How large will this surplus or shortage be? 3. **Price Trends at $2**: If the price is $2, will the price tend to increase, decrease, or stay the same over time? 4. **Surplus/Shortage at $5**: If the market price is $5, will there be a surplus or shortage of yo-yos? How large will this surplus or shortage be? 5. **Price Trends at $5**: If the price is $5, will it tend to increase, decrease, or stay the same over time? **Analysis Guide:** - **Finding Equilibrium**: Equilibrium is where quantity demanded equals quantity supplied. Review the table to identify this point. - **Surplus or Shortage Calculation**: At any given price, subtract the quantity demanded from the quantity supplied to determine surplus (Qs > Qd) or shortage (Qd > Qs). - **Predicting Price Changes**: Evaluate whether the current price will lead to an adjustment toward equilibrium. If there’s a surplus, prices tend to decrease; if there’s a shortage, prices tend to increase.
Transcribed Image Text:**Supply and Demand Analysis for Yo-Yos Market** **Table: Supply and Demand Schedules** | Price | Quantity Demanded (Qd) | Quantity Supplied (Qs) | |-------|------------------------|------------------------| | $1 | 100 | 10 | | $2 | 80 | 35 | | $3 | 60 | 60 | | $4 | 40 | 85 | | $5 | 20 | 110 | **Questions for Analysis:** 1. **Equilibrium Analysis**: What are the equilibrium price and quantity for yo-yos? 2. **Surplus/Shortage at $2**: If the market price is $2, will there be a surplus or shortage of yo-yos? How large will this surplus or shortage be? 3. **Price Trends at $2**: If the price is $2, will the price tend to increase, decrease, or stay the same over time? 4. **Surplus/Shortage at $5**: If the market price is $5, will there be a surplus or shortage of yo-yos? How large will this surplus or shortage be? 5. **Price Trends at $5**: If the price is $5, will it tend to increase, decrease, or stay the same over time? **Analysis Guide:** - **Finding Equilibrium**: Equilibrium is where quantity demanded equals quantity supplied. Review the table to identify this point. - **Surplus or Shortage Calculation**: At any given price, subtract the quantity demanded from the quantity supplied to determine surplus (Qs > Qd) or shortage (Qd > Qs). - **Predicting Price Changes**: Evaluate whether the current price will lead to an adjustment toward equilibrium. If there’s a surplus, prices tend to decrease; if there’s a shortage, prices tend to increase.
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