Question

Demand and Supply Price $10 Quantity Demanded Quantity Supplied 0 1 2 3 4 5 6 7 8 9 10 Quantity

What is the equilibrium price and quantity?

1. P=10, Q=0                 
2. P=6,Q=4                    
3. P=5,Q=5                    
4. P=0,Q=10

Use the image above. What happens when the market price is $4?

1. Shortage                   
2. Nothing                     
3. Surplus                     
4. Equilibrium

Using the same image. What happens if the price is $10?                           

1. Shortage                   
2. Nothing      
3. Surplus                     
4. Equilibrium

Answer 1

Answer
the equilibrium is at Qd=Qs
where
Q=5 units and P=$5
the equilibrium price is $5 and the quantity is 5 units
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Answer
when P=4 then Qd=6 units and Qs=4 units
Qd>Qs so there is a shortage in the market
shortage =Qd-Qs=6-4=2 units
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Answer
when P=10 then Qd=0 and Qs=10
Qd<Qs so there is a surplus
Surplus =10-0=10 units