The following graph shows the monthly demand and supply curves in the market for

Question

The following graph shows the monthly demand and supply curves in the market for calendars Use the graph input tool to help you answer the following questions. Enter an amount into the Price field to see the quantity demanded and quantity supplied at that price. You will not be graded on any changes you make to this graph Graph Input Tool Market for Calendars 60 54 48 E 42 36 30 24 18 12 Price (Dollars per calendar) 18 Supply Quantit Demanded (Calendars) uantity Supplied (Calendárs) 1,000 420 Demand 0 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Calendars) The equilibrium price in this market is $ per calendar, and the equilibrium quantity is calendars bought and sold per month Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus, and whether this places upward or downward pressure on prices. Price Shortage or Surplus Amount (Calendars) (Dollars per calendar)Shortage or Surplus Pressure 18 42

Explanation / Answer

a) Equilbruim price = $30 and equilbruim quantity = 500 calendars

b)

because, at price $18 = QD = 1000 and QS = 420

shortage = 1000 - 420 = 580

at price $42. QD = 0 and Qs = 580

so surplus = 580

Price Shortage or surplus shortage or surplus amount pressure 18 Shortage 580 inflationary or higher price 42 Surplus 580 deflationary or price low

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.