Table 7-4 Price Quantity Quantity Demanded Supplied $18 10 $15 4 $ 12 8 $9 12 $6 16 $3 20 O $3 O $6 O $9 12 10 $12 18 6 14 Refer to Table 7-4. What is the equilibrium or market-clearing price? 2

11. If suppliers could only provide 5 units, what would the price be? $8 Supply $6- $4 Demand $2- 0 5 10 15 20 25 30 35 Quantity $8 O $5 O $10 O $2 O O Price

2. The following data represent the demand schedule and supply schedules of a certain commodity. Based on this information, answer questions 1, 2, 3 and 4 properly. Price $9 8 7 6 5 4 quantity demanded 50 47 44 41 38 35 32 29 quantity supplied 22 26 30 34 38 42 46 50 3 2 1 26 54 1. Sketch the demand schedule and supply schedule in the same Label the equilibrium price (Pe) and the equilibrium quantity (Qe) properly. 2. Determine (tabulate) the equilibrium and equilibrium quantity. Use the surplus and shortage columns to illustrate your analysis. 3. Is a price of $7.50 an equilibrium price? If yes why and if not why not? 4. Is a price of 3.75 an equilibrium price? If yes, why and if not why not?

1. Predict the impact on equilibrium price and quantity for the relevant market given the following changes. 1. What will happen in the market for home computers if: a)consumers become more familiar with the use and benefits of home computers. b)there is a technological cost saving breakthrough in producing home computers. c) both (a) and (b) occur simultaneously. Please support with a graph.

10 If the supply curve shifts right and the demand curve remains unchanged price increases; quantity increases price decreases; quantity increases price increases; quantity increases, decreases or is unchanged price increases; quantity decreases

[MUST SHOW WORK] Price $40 $50 $60 $70 $80 $90 $100 Select one: A. shortage; rise The Turkey Market 300 350 400 450 500 550 600 In the turkey market, if the price is $40 per turkey, there is a(an) to a price OB. surplus; fall OC. surplus; rise Quantity Demanded O D. equilibrium; rise O E. shortage; fall Clear my choice 500 450 400 350 300 Quantity Supplied 250 200 leading

Price (dollars per gallon) S2 $5.50 3.50 2.50 D Quantity (millions of gallons per month) 30 40 45 Assume the graph above illustrates a new tax put into the market for soft drinks. S2 is the supply curve with the $2 tax in place. What price would consumers pay if the tax was placed on consumers instead of producers? 1) $2.00 O 2) $3.50 3) $2.50 4) $1.50

Question 3 For question 3, 4, and 5, use the table below for the Demand and Supply of Widgets Price Quantity Demanded Quantity Supplied $1 18 -3 $2 16 6 $3 14 9 $4 12 12 $5 10 15 The equilibrium price is $2 $3 O $4 O $5

The graph shows the demand curve and the supply curve in the market for newpapers.   Draw a horizontal line at a price at which there is a surplus of newpapers. Label it Surplus.

Per Pair Demanded Supplied $2 18 3 $4 14 4 $6 10 5 $8 6 6 $10 2 8 In supply and demand schedules in Figure 3-10, the equilibrium price of a pair of socks is $10 O $6 $4 O $8 $2