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