Explain why the market price may not be the same as the equilibrium price.

When the price is above the equilibrium, explain how market forces move the market price to equilibrium. Do the same when the price is below the equilibrium.

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

In each of the following scenarios, explain the changes in either supply or demand that would result. If the initial equilibrium price were yet to change, indicate whether a surplus or a shortage would result. Given this, what do you expect will subsequently happen to the price of the good? In the market for paper: New advances in recycling technology reduce the cost of producing paper made from recycled materials. In the market for lightbulbs: Recently General Electric, one of the largest suppliers of light bulbs, decided to discontinue producing light bulbs. In the market for Las Vegas hotels: A heat wave in Las Vegas causes tourists to cancel their hotel room reservations and vacation elsewhere.