Solved

Consider the Supply and Demand Schedules Below to Answer the Questions

Question 25

Essay

Consider the supply and demand schedules below to answer the questions that follow:
price qty.demanded qty. supplied $10010919828737646555464373282191\begin{array}{ccc}\text {price }&\text {qty.demanded }&\text {qty. supplied }\\\hline \$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\end{array}
(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.)

Correct Answer:

verifed

Verified

(a)$5.00,where quantity demanded equals ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents