Plot the market demand and market supply curves for above data. a) What is the equilibrium price and quantity? Label equilibrium price (Pe) and equilibrium quantity (Qe). b) If the market price is at $80, will there be surplus or shortage? How much? c) How big is the surplus or shortage if the price is $80 higher than the equilibrium price?

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
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Price quantity demand consumer A (units) quantity demand consumer B (units) Quantity supplied  seller 1 (units) Quantity supplied  seller 2 (units)
200 200 150 330 240
160 220 180 180 230
120 250 200 230 220
80 260 240 180 210
40 290 260 130 200

questions:

Plot the market demand and market supply curves for above data.

a) What is the equilibrium price and quantity? Label equilibrium price (Pe) and
equilibrium quantity (Qe).

b) If the market price is at $80, will there be surplus or shortage? How much?

c) How big is the surplus or shortage if the price is $80 higher than the equilibrium price?

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