AB 204 All Assignments AB 204 All Assignments | Page 4

1) The table below indicates the total quantity supplied and demanded
of flashlights at different price levels.
Draw Supply and Demand Curves.
What are the equilibrium price and the equilibrium quantity?
Suppose the market price is $5. What problem would exist in the
market? Does it lead to surplus or shortage? How do you expect this
problem will affect the price? Indicate this on the supply and demand
graphs.
Assume the market price is currently $2. What problem would occur in
the market due to this price? Will it be shortage or surplus? What will
its effect on the price? Indicate this on the supply and demand graph.
2) Consider supply and demand schedules for Alaska Salmon indicated
in the following tables to answers questions from a –d below.
Referring to the schedules of supply and demand, what is the
equilibrium price of Salmon? What is the equilibrium quantity of
salmon demanded and supplied at the equilibrium price?
Second, assume that Alaskan Salmon can also be sold in UK. The UK
demand schedule for salmon is as follows:
Refer to the combined U.S. and UK demand schedule, the U.S. demand
schedule and the supply schedule, and analyze the change in the
market for salmon .What will happen to the price at which fishermen
can sell salmon? What will be the final output of salmon?