1. The equilibrium price of a swimming pool in this market is (35,000, 20,000, 3
ID: 1252703 • Letter: 1
Question
1. The equilibrium price of a swimming pool in this market is (35,000, 20,000, 30,000, 25,000, or 15,000) per swimming pool and the equilibrium quantity is (200, 150, 120, 240, or 300) swimming pools bought and sold per month.
2. suppose the price of a swimming pool if 15,000$ , in this case there would be a (shortage or surplus) of (150, 400, 300, 50, or 100) swimming pools per month, which would exert (upward or downward) pressure on prices.
3. Now, suppose that the price of a swimming pool is 24,000$ in this case there would be a (shortage or surplus) of (20, 80, 40, 120, or 240) swimming pools per month, which would exert (upward, or downward) pressure on prices
Explanation / Answer
1) The equilibrium price of a swimming pool is 20,000 and the equilibrium quantity is 200 (where the supply -orange- and demand -blue- curves intersect)
2) shortage of 150, which would exert an upward pressure on prices. At the price 15000, the demand exceeds the supply, which is a shortage. The size of the shortage is the difference in quantity demanded (300) and quantity supplied (150). When there is a shortage, there is an upward pressure on prices
3) surplus of (80?) which would exert a downward pressure on prices. I can't really tell what the quantity demanded and supplied at a price of 24000 would be, but from the graph I can tell that supply exceeds demand creating a surplus. If you can adjust the price in the calculator to view the exact quantity demanded and supplied, the size of the surplus will be the difference between supply and demand. My best guess is that at this price quantity demanded is 150 and quantity supplied is about 230, which would be a surplus of 80.
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