9. Market equilibrium and disequilibrium The following graph shows the monthly d
ID: 1150727 • Letter: 9
Question
9. Market equilibrium and disequilibrium The following graph shows the monthly demand and supply curves in the market for hats Use the graph input tool to help you answer the following questions. Enter an amount into the Price field to see the gwantity demanded and quantity supplied at that price. Yo will not be graded onm any changes you make to this graph on Graph Input Tool Market for Hats 80 72 64 56 Price 24 Dollars per hat 500 Quantity Supplied Hats) Quantity Demanded 40 32 16 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hats) equilibrium price in this market is $ per hat, and the equilibrium quantity is hats bought and sold per month Complete the following tabie by indicating at each price whether there is a shortage or surpius in the market, the amount of that shortage or surplus, and whether this places apward or downwand pressure on prices. Price Shortage or Surplus Amount Dollars per hat)Shortage or Surplus Hats 32 Grade It Now Save & ContinueExplanation / Answer
Ans:
Equilibrium price is where quantity of goods supplied is equal to the quantity of goods demanded.It is the point at which the demand and supply curves intersect.
The equilibrium price in the market is $40.
The equilibrium quantity is 250 Hats.
Table showing shortage or surplus in the market
when price is $32, quantity demanded is 370 and quantity supplied is 130.Hence the shortage is 240 .i.e(370-130)
when price is $48, quantity demanded is 120 and quantity supplied is 380.Hence the surplus is 260.i.e(370-130)
Price Shortage or Surplus Shortage or Surplus Amount Pressure 32 Shortage 240 Demand side 48 Surplus 260 Supply sideRelated Questions
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