12. Market equilibrium and disequilibrium The following graph shows the monthly

Question

12. Market equilibrium and disequilibrium 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 100 50 Dollars calendar 250 uantity Supplied 250 Deman Calendars) 60 40 u 20 and a 20 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Calendars) The equilibrium price in this market is50 per calendar, and the equilibrium quantity is 250 calendars bought and sold per month

Explanation / Answer

Explanation:

At P = $40, quantity demanded = 270 and quantity supplied is 230. So, there is a shortage of 50 calenders (i.e., 270 - 230).

At P = $60, quantity demanded = 230 and quantity supplied is 270. So, there is a shortage of 50 calenders (i.e., 270 - 230).

Price ($) Shortage or surplus Shortage or surplus Amount Pressure 40 Shortage 40 Upward 60 surplus 40 Downward

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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