3. Use the graph below to answer the questions that follows: Price Ps P2 P1 91 Quantity i. What is the equilibrium price and quantity? ii. Which of the prices will lead to a surplus? Calculate the surplus. Which of the prices will lead to a shortage? Calculate the shortage.

Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand, And Government Policies
Section: Chapter Questions
Problem 2CQQ
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3. Use the graph below to answer the questions that follows:
Price
Ps
P2
P1
92
Quantity
What is the equilibrium price and quantity?
Which of the prices will lead to a surplus? Calculate the surplus.
Which of the prices will lead to a shortage? Calculate the shortage.
ii.
iii.
Transcribed Image Text:3. Use the graph below to answer the questions that follows: Price Ps P2 P1 92 Quantity What is the equilibrium price and quantity? Which of the prices will lead to a surplus? Calculate the surplus. Which of the prices will lead to a shortage? Calculate the shortage. ii. iii.
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