This question deals with demand and supply and refers you to the table below.
a. Given the table, graph the demand and supply curves for flashlights. Make certain to label equilibrium price and equilibrium quantity.
b. What is the equilibrium price and equilibrium quantity?
c. Suppose the price is currently at $5. What problem would exist in the economy? What would you expect to happen to price? Show this on your graph.
d. Suppose the price is currently $2. What problem exists in the economy? What would you expect to happen to price? Show this on your graph.
Correct Answer:
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a.
b. Equilibrium price wou...View Answer
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