10. A market supply and demand analysisThe following graph shows the monthly demand and supply curves in the market for teapots.Use the graph input tool to help you answer the following questions. Enter an amount into the Price field to see the quantity demanded and quantsupplied at that price. You will not be graded on any changes you make to this graph.PRICE (Dollars per teapot)8072645648321680DemandSupply0 50 100 150 200 250 300 350 400 450 500QUANTITY (Teapots)The equilibrium price in this market is $Graph Input ToolMarket for TeapotsPrice(Dollars per teapot)Price(Dollars per teapot) Shortage or Surplus4832QuantityDemanded(Teapots)per teapot, and the equilibrium quantity is16Shortage or Surplus Amount(Teapots)310Quantity Supplied(Teapots)teapots 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 surplusand whether this places upward or downward pressure on prices.Pressure?100

Shortage:A shortage takes place whilst the amount demanded in a market exceeds the amount provided…

Answered: Shortage or Surplus

Business

Economics

Shortage or Surplus

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

10. A market supply and demand analysis
The following graph shows the monthly demand and supply curves in the market for teapots.
Use the graph input tool to help you answer the following questions. Enter an amount into the Price field to see the quantity demanded and quant
supplied at that price. You will not be graded on any changes you make to this graph.
PRICE (Dollars per teapot)
80
72
64
56
48
32
16
8
0
Demand
Supply
0 50 100 150 200 250 300 350 400 450 500
QUANTITY (Teapots)
The equilibrium price in this market is $
Graph Input Tool
Market for Teapots
Price
(Dollars per teapot)
Price
(Dollars per teapot) Shortage or Surplus
48
32
Quantity
Demanded
(Teapots)
per teapot, and the equilibrium quantity is
16
Shortage or Surplus Amount
(Teapots)
310
Quantity Supplied
(Teapots)
teapots 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.
Pressure
?
100

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