The following graph shows the monthly demand and supply curves in the market for hats. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Hats 100 90 I Price (Dollars per hat) 30 80 Supply
The following graph shows the monthly demand and supply curves in the market for hats. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Hats 100 90 I Price (Dollars per hat) 30 80 Supply
Chapter4: Supply And Demand: An Initial Look
Section: Chapter Questions
Problem 2TY
Related questions
Question
Is this right?
Thanks
Transcribed Image Text:The following graph shows the monthly demand and supply curves in the market for hats.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
Graph Input Tool
Market for Hats
100
90
I Price
(Dollars per hat)
30
Supply
80
Quantity
Demanded
(Hats)
Quantity Supplied
(Hats)
500
210
70
60
50
40
Demand
30
20
10
50
100 150 200 250 300 350 400 450 500
QUANTITY (Hats)
The equilibrium price in this market is
$50 per hat, and the equilibrium quantity is 250
hats bought and sold per month.
Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus,
and whether this places upward or downward pressure on prices.
Price
Shortage or Surplus Amount
(Dollars per hat)
Shortage or Surplus
(Hats)
Pressure
60
Surplus
250
Downward
40
Shortage
250
Upward
PRICE (Dollars per hat)
Expert Solution
Step 1
At equilibrium, market demand and market supply curve intersects each other.
The equilibrium price in this market is $50 per hat, and the equilibrium quantity is 250 hats bought and sold per month.
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