posted by sean on .
Original quanity | new quantity . |price. |quanity supplied
40 12$ 80
45 11$ 75
50 10$ 70
55 9$ 65
60 8$ 60
65 7$ 55
70 6$ 50
75 5$ 45
1. what is the equilibrium price and quanity? explain
2.what will occur if the price is instially set a $12
3.what will occur if the price is originally set at $5
4.draw a graph that illustrates the information for example
Now suppose that the demand increases by 10 units at each price. fill in the new quanity demanded in table above
5.determine the new equilibrium price and quanity
6.reproduce the graph tha u drew for question 4 and label oringinal demand and supply schedules and labal oringinal equilibium price and quanity. now draw new curves for new equilibrium aon same graph
take a shot, what do you think?
hint: drawing a graph will help, put Price on the y-axis, Q on the x-axis. and plot Qs and Qd. Equilibrium occurs when Qs=Qd for a given price.