The graph shows the market for concert tickets. Draw a horizontal line at a price at which there is a shortage of concert tickets. Label it Price. Draw an arrow that shows the amount of the shortage When does a shortage occur? How does the price change to reach equilibrium? A shortage occurs at a given price when The price to reach equilibrium. A. supply is greater than demand; falls OB. the quantity demanded is greater than the quantity supplied; rises OC. demand is greater than supply, rises OD. the quantity supplied is greater than the quantity demanded; falls 600- 500- 400- 300- 200- 100- 0- Price (dollars per ticket) Quantity (millions of concert tickets per year) D 6 (6,100) >>> Draw only the objects specified in the question.

Part 2: Points A, B and C in the chart below depict either a shortage, a surplus or an equilibrium. Indicate what each letter represents in the chart by circling the correct term: A. Shortage, surplus, equilibrium point B. Shortage, surplus, equilibrium point C. Shortage, surplus, equilibrium point Lemon Supply & Demand 45 40 A 35 30 15 10 20 30 40 50 60 70 10 Bushels of Lemons Price per Bushel

I can seem to figure out the last two questions I bolded: Why does the demand curve slope downward?  Why does the supply curve slope upward? Given the demand and supply schedules below:   Price (dollars per CD) Quantity Demanded (per day) Quantity Supplied (per day) 5.00 300 100 6.00 250 150 7.00 200 200 8.00 150 250 9.00 100 300   What is the market equilibrium?   If the price of CD is $6.00, describe the situation in the CD market. Explain how market equilibrium is restored.   A rise in incomes increases the quantity of CDs demanded by 100 a day at each price. What is the new equilibrium and how does the market adjust?   A rise in the number of recording studios increases the quantity of CDs supplied by 75 a day at each price. People download more music from the Internet and the quantity demanded of CDs decreases by 25 a day at each price. With no change in incomes, what is the new equilibrium and how does the market adjust?

Name Changes in Supply Problem Set Change in Supply Change in Quantity Supplied charge in the S supply deteaminants Caused By 5. The law of supply states that as P QS Caused By charge in parce 6. This relationship is known as a relationship. 7. A change in quantity supplied is illustrated by the curve. 8. The table that gives us the data for our supply curve is a Draw It Draw It Price of Thneeds Quantity Supplied of Thneeds 2.00 4.00 6.00 4 8.00 6 10.00 8 12.00 10 Directions: For numbers 1-7, decide what will happen to the supply of foreign and domestic cars in the Unite 1) Auto Workers Agree to Wage and Benefit Cuts a. Supply of cars will insease b. Draw It: C. What happens to market clearing price? d. What happens to equilibrium quantity? 2) New Technology Increases Efficiency in Detroit Factories a. Supply of cars will b. Draw It: 9. How many Thneeds are you willing to produce at $1.00? 10. How many Thneeds are you willing to produce at $11.00? C. What happens to market clearing…