Question

x+ ← → 을 https://newconnect.mheducati 7 The table below shows the demand and supply for fuji apples in Peterborough. lied 2 230 points 2 0155:44 190 a. What is the equilibrium price and quantity traded? The equibrium price is and the quantity traded is b. Suppose supply increases by 40. Complete the last column in the table above. c. What would be the price and quantity traded at the new equilibrium? The equilibrium price is $L-] and the quantity traded is d. After the increase in supply, at a price of $6 there would be a [Click to select)ounits

Answer 1

Answer a) at equilibrium,

Quantity demanded = quantity supplied

So at price equals $ 8, quantity demanded equals quantity supplied equals 190.

Answer b) new column

Price	demand	new supply
0	230	190
2	220	200
4	210	210
6	200	220
8	190	230
10	180	240

Answer c) at new equilibrium

Demand = new supply

So new equilibrium , price =$ 4, quantity = $210

answer d) now at price =$6

Demand is lower than supply. , Thus excess supply, hence surplus.

Of 20 units, ( bcoz demand is 200 units & supply is 220 )