Quantity Quantity
Demanded Price Supplied
(millions) ($) (millions)
2 $3,000 17
4 2,500 16
7 2,000 14
11 1,500 11
16 1,000 7
22 500 2
| Jim Whitney | Economics 101 |
Quantity
Quantity
Demanded Price
Supplied
(millions) ($) (millions)
2
$3,000 17
4
2,500 16
7
2,000 14
11
1,500 11
16
1,000 7
22
500 2
2. The equilibrium price "clears the market," in that quantity demanded equals quantity supplied. The equilibrium price = _________.
3. At a price of $2,500...
Is there excess demand or
excess supply? __________________
How many units? _________
million
Are PC inventories rising
or falling? __________________
Is the incentive to raise
or lower price? __________________
4. At a price of $1,000...
Is there excess demand or
excess supply? __________________
How many units?_________
million
Are PC inventories rising
or falling? __________________
Is the incentive to raise
or lower price? __________________
5. Indicate whether equilibrium price (P) and quantity
(Q) will rise (+) or fall (-) if:
Price Quantity
(1) Supply shifts right _____ _____
(2) Supply shifts left _____
_____
(3) Demand shifts right _____ _____
(4) Demand shifts left _____
_____