The market equilibrium is shown by the intersection of the ........... curve and the ............. curve.

1. Given a demand function Qd =60 - 10P and a supply function Qs = 10P, find the equilibrium quantity and price. Answers are in numbers. A. Q=20; P = 2 B. Q=30; P = 3 C. Q=20; P = 3 D. Q = 30; P = 2 2. A market is modeled by the following demand and supply functions: Qd= 60 - 10P and Qs = 10P. If P-$5, determine if there is an equilibrium, excess supply (surplus), or excess demand (shortage). Answers are in numbers. A. 0 (Equilibrium) B. 20 (Surplus) C. 40 (Surplus) D. 20 (shortage) 3. An increase in both demand and supply will A. Increase quantity, and increase price B. Decrease quantity, and decrease price C. Increase quantity, and may increase, reduce or leave price unchanged D. Decrease quantity, and may increase, reduce or leave price unchanged 4. A decrease in demand and an increase in supply will A. Reduce price but may increase, decrease, or leave quantity unchanged. B. Increase price but may increase, decrease, or leave quantity unchanged. C. Reduce price but increase quantity…

Consider the market shown in equilibrium at point A in the graph to the right. Suppose the market experiences the following shock: A technological improvement 1.) Use the line drawing tool to show the result of the market shock. Properly label this line. 2.) Use the point drawing tool to indicate the new equilibrium price and quantity. Label this new point 'B'. Carefully follow the instructions above, and only draw the required objects. Market Price A Quantity D

Assume the market for peanut butter is competitive with normally sloped supply and demand curves and the market is currently in equilibrium.   If there is a decrease in supply resulting in a new market equilibrium, will the amount of consumer surplus increase, decrease, or remain unchanged relative to the amount of consumer surplus found at the initial market equilibrium?