Supp 12 Dollars per calendar) 48 42 36 30 620 Quantity Supplied 200 emanded (Cal
ID: 1144000 • Letter: S
Question
Supp 12 Dollars per calendar) 48 42 36 30 620 Quantity Supplied 200 emanded (Calendars) 18 Demand 12 0 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Calendars) quilibrium price in this market is per calendar, and the equilibrium quantity is calendars bought and sold per month lete 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, hether this places upward or downward pressure on prices. Price Shortage or Surplus Amount (Calendars) llars per calendar) Shortage or Surplus Pressure on Price 18 SessionExplanation / Answer
Equilibrium occur in a market when demand equals supply that is there is either excess supply or excess demand.
As you can see that demand and supply curve in the given graph meet at $30 thus equilibrium price is $30 per callender and equilibrium quantity is 500 calenders per month.
When there is shortage in maarket it implies the supply falls short of demand and on the other hand in surplus the supply is more than demand.
Thus at $42 price supply is 700 and demand is 400 implying a surplus of 700-400 = 300 calenders. And beacuse of much output i market than required the price will reduce.
On other hand at $18 supply is 300 and emand is 600 shhowing a shortage of 600-300 = 300. Because of shortage there will be upward pressure on price to which price will increase.
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