Refer to the following supply and demand schedules for the market for yo-yos. Price Qd Qs $1 $2 $3 $4 $5 100 80 10 35 60 60 85 110 40 20 1. What are the equilibrium price and quantity of yo-yos? 2. If price in the market is $2, will there be a surplus or shortage of yo-yos and how large will the surplus/shortage be? Show your work. 3. If price is $2, will price tend to increase, decrease, or stay the same over time? 4. If the price in the market is $5, will there be a surplus or shortage of yo-yos and how large will the surplus/shortage be? Show your work. 5. If price is $5, will it tend to increase, decrease, or stay the same over time?
Refer to the following supply and demand schedules for the market for yo-yos. Price Qd Qs $1 $2 $3 $4 $5 100 80 10 35 60 60 85 110 40 20 1. What are the equilibrium price and quantity of yo-yos? 2. If price in the market is $2, will there be a surplus or shortage of yo-yos and how large will the surplus/shortage be? Show your work. 3. If price is $2, will price tend to increase, decrease, or stay the same over time? 4. If the price in the market is $5, will there be a surplus or shortage of yo-yos and how large will the surplus/shortage be? Show your work. 5. If price is $5, will it tend to increase, decrease, or stay the same over time?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 10PA
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Please answer number #1 and #3 for me. Thanks.
Transcribed Image Text:Refer to the following supply and demand schedules
for the market for yo-yos.
Price
Qd
Qs
$1
100
10
$2
$3
$4
$5
80
60
35
60
40
20
85
110
1. What are the equilibrium price and quantity of
yo-yos?
2. If price in the market is $2, will there be a
surplus or shortage of yo-yos and how large
will the surplus/shortage be? Show your work.
3. If price is $2, will price tend to increase,
decrease, or stay the same over time?
4. If the price in the market is $5, will there be a
surplus or shortage of yo-yos and how large
will the surplus/shortage be? Show your work.
5. If price is $5, will it tend to increase, decrease,
or stay the same over time?
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