The diagram to the right is a basic supply and demand graph. Economists use it to analyze equilibrium price and quantity in a market. When price equals $8, a surplus occurs. 1.) Using the line drawing tool, draw a horizontal line from the $8 value on the vertical axis to represent the surplus. Label this line 'Price". 2.) Using the point drawing tool, locate quantity demanded (label the point P₁) and quantity supplied (label the point P₂) at this price of $8. Carefully follow the instructions above and only draw the required objects. The amount of the surplus is units. This surplus will cause price to fall to equilibrium level. 10.00 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00+ 0 Price per unit (S) 10 20 30 40 50 60 S D 70 80 90 100
The diagram to the right is a basic supply and demand graph. Economists use it to analyze equilibrium price and quantity in a market. When price equals $8, a surplus occurs. 1.) Using the line drawing tool, draw a horizontal line from the $8 value on the vertical axis to represent the surplus. Label this line 'Price". 2.) Using the point drawing tool, locate quantity demanded (label the point P₁) and quantity supplied (label the point P₂) at this price of $8. Carefully follow the instructions above and only draw the required objects. The amount of the surplus is units. This surplus will cause price to fall to equilibrium level. 10.00 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00+ 0 Price per unit (S) 10 20 30 40 50 60 S D 70 80 90 100
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![The diagram to the right is a basic supply and demand graph. Economists use it to analyze equilibrium
price and quantity in a market.
When price equals $8, a surplus occurs.
1.) Using the line drawing tool, draw a horizontal line from the $8 value on the vertical axis to represent the
surplus. Label this line 'Price".
2.) Using the point drawing tool, locate quantity demanded (label the point P₁) and quantity supplied (label
the point P₂) at this price of $8.
Carefully follow the instructions above and only draw the required objects.
The amount of the surplus is
units.
This surplus will cause price to
fall to equilibrium level.
Price per unit (S)
8.00-
7.00-
6.00-
X
5.00-
4.00-
3.00-
10.00
9.00-
2.00-
1.00-
0.00+
0
10
20 30 40 50
60
D
70 80 90 100
Q
Q
G](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba261385-97f5-40c0-ae57-7fa3ebd6691b%2F0233d07e-69b8-4535-ac02-7e0265e77f8c%2Fqgpwe9n_processed.png&w=3840&q=75)
Transcribed Image Text:The diagram to the right is a basic supply and demand graph. Economists use it to analyze equilibrium
price and quantity in a market.
When price equals $8, a surplus occurs.
1.) Using the line drawing tool, draw a horizontal line from the $8 value on the vertical axis to represent the
surplus. Label this line 'Price".
2.) Using the point drawing tool, locate quantity demanded (label the point P₁) and quantity supplied (label
the point P₂) at this price of $8.
Carefully follow the instructions above and only draw the required objects.
The amount of the surplus is
units.
This surplus will cause price to
fall to equilibrium level.
Price per unit (S)
8.00-
7.00-
6.00-
X
5.00-
4.00-
3.00-
10.00
9.00-
2.00-
1.00-
0.00+
0
10
20 30 40 50
60
D
70 80 90 100
Q
Q
G
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