MARKET EQUILIBRIUM & POLICY WORKSHEETThis question examines the market for bananas. You will use the formulas for ademand and supply curve to identify the quantity of bananas demanded and thequantity of bananas supplied at different prices.Below, you have the formulas for the demand curve and the supply curve for poundsof bananas. If you plug any price into the formula for the demand function, you getthe quantity demanded at that price. If you plug any price into the supply function,you get the quantity supplied at that price.The Demand Function for bananas:Q-25-2PThe Supply Function for bananas:Q-3PTask 1: Use the table below to find the quantity demanded and the quantity suppliedof pounds of bananas at each price.Price(per pound of bananas)$246810Quantity of Bananas Quantity of BananasDemanded(pounds)219Supplied(pounds)12Task 2: At a price of $4, is there a shortage or surplus of bananas? How manypounds?Task 3: At a price of $8, is there a shortage or surplus of bananas? How manypounds?

Given information: Q = 25 - 2P ---------> Demand function for bananas Q = 3P --------------->…

Answered: Task 2: At a price of $4, is there a…

Task 2: At a price of $4, is there a shortage or surplus of bananas? How many pounds? Task 3: At a price of $8, is there a shortage or surplus of bananas? How many pounds?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 10P

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