In a market, if the price of a good is set below the equilibrium price, what will happen? a) Shortage b) Surplus c) Equilibrium d) Price ceiling

Analyze the effects of changes in demand and supply on market equilibrium.

Suppose that the market for coffede is in equilibrium at a price of $2.25 per pound and a monthly quantity of 50 million pounds. After a cold winter in South America, people know that the supply of coffee months from now will be sharply reduced. What if anything, will happen in the foffee market now? Explain.

In the market for hats, demand decreases and supply increases. If you know nothing else about happens in the market for hats, what would you predict would happen to the equilibrium price? The equilibrium price decreases The equilibrium price stays the same The equilibrium price increases There is not enough information to determine how the equilibrium price will change