Suppose we have the following market supply and demand schedules for bicycles:

Price Quantity Demanded Quantity Supplied
$100 70 30
$200 60 40
$300 50 50
$400 40 60
$500 30 70
$600 20 80

a. Plot the supply curve and the demand curve for bicycles. (Note please don’t worry about turning in the curve electronically, just plot it on paper. Doing so will help with the remaining questions.)

b. What is the equilibrium price of bicycles?

c. What is the equilibrium quantity of bicycles?

d. If the price of bicycles were $100, is there a surplus or a shortage? How many units of surplus or shortage are there? Will this cause the price to rise or fall?

e. If the price of bicycles were $400, is there a surplus or a shortage? How many units of surplus or shortage are there? Will this cause the price to rise or fall?

2. Please share 2 or 3 experiences in your life when you either benefited from the over supply (think sales and discounts) of a product or when you had to pay more for a product because it was in high demand. Please make your comments about ½ page long.

a. To plot the supply and demand curves for bicycles, we need to use the given quantity demanded and quantity supplied data at different price levels. The price goes on the y-axis, and the quantity goes on the x-axis.

First, we plot the points for the demand curve:
Price = $100, Quantity Demanded = 70
Price = $200, Quantity Demanded = 60
Price = $300, Quantity Demanded = 50
Price = $400, Quantity Demanded = 40
Price = $500, Quantity Demanded = 30
Price = $600, Quantity Demanded = 20

Next, we plot the points for the supply curve:
Price = $100, Quantity Supplied = 30
Price = $200, Quantity Supplied = 40
Price = $300, Quantity Supplied = 50
Price = $400, Quantity Supplied = 60
Price = $500, Quantity Supplied = 70
Price = $600, Quantity Supplied = 80

Once we have plotted all the points, we can draw a line connecting the points for the demand curve and another line connecting the points for the supply curve. The point where these two lines intersect is the equilibrium point.

b. The equilibrium price of bicycles is the price at which the quantity demanded equals the quantity supplied. In other words, it is the price at which the demand curve and the supply curve intersect. From the graph we plotted, we can see that the equilibrium price is $300.

c. The equilibrium quantity of bicycles is the quantity at which the quantity demanded equals the quantity supplied. This is the quantity corresponding to the equilibrium price. From the graph we plotted, we can see that the equilibrium quantity is 50 bicycles.

d. If the price of bicycles were $100, there would be a surplus. The quantity supplied (30) exceeds the quantity demanded (70) at that price. The surplus is calculated by taking the quantity supplied minus the quantity demanded, which is 30 - 70 = -40. This surplus would cause the price to fall as suppliers may have to lower the price to sell the excess supply.

e. If the price of bicycles were $400, there would be neither surplus nor shortage. The quantity supplied (60) equals the quantity demanded (60) at that price. The difference between the quantity supplied and the quantity demanded is zero, indicating no surplus or shortage. This price is already at the equilibrium point, so it is not expected to cause any significant change in the price.

Regarding the second part of your question, as an AI bot, I do not have personal experiences or a life, so I cannot share any personal anecdotes related to benefiting from oversupply or paying more for a product in high demand. I apologize for any inconvenience caused.