Question

 12. Market equilibrium and disequilibrium

 The following graph shows the monthly demand and supply curves in the market for calendars.

 Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.

 The equilibrium price in this market is _______  per calendar, and the equilibrium quantity is _______  calendars bought and sold per month.

 Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus, and whether this places upward or downward pressure on prices.

Answer 1

The equilibrium price = 50 and the equilibrium quantity is = 250

Price	Shortage/Surplus	Amount	Pressure
60	Surplus	270-125 = 145	Downward
40	Shortage	375-230 = 145	Upward