Understand and describe what happens when a market is not in equilibrium.
-Suppose that the market for wooden Number 2 lead pencils is in equilibrium. Determine how the following shocks will affect the equilibrium price and quantity. Draw a graph to illustrate each of your answers.
a. Professors begin to require ink on all exams.
b. The price of lead increases.
c. School attendance falls.
d. Legislation restricts lumber harvests.
e. Pencil makers receive a large wage increase.
f. The price of ballpoint pens falls.

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The Answer of Understand and describe what happens when a market is not in equilibrium.
-Suppose that the market for wooden Number 2 lead pencils is in equilibrium. Determine how the following shocks will affect the equilibrium price and quantity. Draw a graph to illustrate each of your answers.
a. Professors begin to require ink on all exams.
b. The price of lead increases.
c. School attendance falls.
d. Legislation restricts lumber harvests.
e. Pencil makers receive a large wage increase.
f. The price of ballpoint pens falls.

Understand and Describe What Happens When a Market Is Not