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AB 204 Unit 3 Assignment Supply and Demand Model and
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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?