Consider the supply and demand schedules below to answer the questions that follow:

PRICE Oty. oty.

Demanded Demanded

$10 0 10

9 1 9

8 2 8

7 3 7

6 4 6

5 5 5

4 6 4

3 7 3

2 8 2

1 9 1

(a) In a free market, what will the equilibrium price be? (b) What will the equilibrium quantity demanded and quantity supplied be? (c) If price were $2, what would happen? (Discuss in terms of adjustment to equilibrium.) (d) If price were $7, what would happen? (Discuss in terms of adjustment to equilibrium.) (e) If price were $5, what would happen? (Discuss in terms of adjustment to equilibrium.)

Question

Consider the supply and demand schedules below to answer the questions that follow:

PRICE	Oty.	oty.
	Demanded	Demanded
$10	0	10
9	1	9
8	2	8
7	3	7
6	4	6
5	5	5
4	6	4
3	7	3
2	8	2
1	9	1

(a) In a free market, what will the equilibrium price be? (b) What will the equilibrium quantity demanded and quantity supplied be? (c) If price were $2, what would happen? (Discuss in terms of adjustment to equilibrium.) (d) If price were $7, what would happen? (Discuss in terms of adjustment to equilibrium.) (e) If price were $5, what would happen? (Discuss in terms of adjustment to equilibrium.)

Quizplus · Accepted Answer

The Answer of Consider the supply and demand schedules below to answer the questions that follow:

PRICE	Oty.	oty.
	Demanded	Demanded
$10	0	10
9	1	9
8	2	8
7	3	7
6	4	6
5	5	5
4	6	4
3	7	3
2	8	2
1	9	1

(a) In a free market, what will the equilibrium price be? (b) What will the equilibrium quantity demanded and quantity supplied be? (c) If price were $2, what would happen? (Discuss in terms of adjustment to equilibrium.) (d) If price were $7, what would happen? (Discuss in terms of adjustment to equilibrium.) (e) If price were $5, what would happen? (Discuss in terms of adjustment to equilibrium.)

Consider the Supply and Demand Schedules Below to Answer the Questions