Table 1 shows the demand and supply of cat food per year Quantity demanded Quantity supplied (dollars per pound of (tons of cat food per (tons of cat food per year) Price cat food) year) 52 15 1.5 46 26 2 43 34 2.5 40 40 3 35 44 a. What is the equilibrium price and quantity? How did you decide your answer? b. If the price is $3.00 per pound of cat food, will there be a shortage, a surplus? Explain why. What is the size of shortage or surplus?

Table 1 shows the demand and supply of cat food per year Quantity demanded Quantity supplied (dollars per pound of (tons of cat food per (tons of cat food per year) Price cat food) year) 52 15 1.5 46 26 2 43 34 2.5 40 40 3 35 44 a. What is the equilibrium price and quantity? How did you decide your answer? b. If the price is $3.00 per pound of cat food, will there be a shortage, a surplus? Explain why. What is the size of shortage or surplus?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8PA

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Similar questions

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