Chapter 4, Problem 21P

To determine

(a)

Equilibrium price of macadamia nuts in Hawaii

Table shows the hypothetical monthly demand and supply of schedules for can of macadamia in Hawaii

Price	QUANTITY DEMANDED(CANS)	QUANTITY SUPPLIED(CANS)
$\$6$	$700$	$100$
$\$7$	$600$	$200$
$\$8$	$500$	$300$
$\$9$	$400$	$400$
$\$10$	$300$	$500$

To determine

(b)

At a price $\$7$ per can, is the equilibrium a surplus or a shortage and how large is it.

Table shows the hypothetical monthly demand and supply of schedules for can of macadamia in Hawaii

Price	QUANTITY DEMANDED(CANS)	QUANTITY SUPPLIED(CANS)
$\$6$	$700$	$100$
$\$7$	$600$	$200$
$\$8$	$500$	$300$
$\$9$	$400$	$400$
$\$10$	$300$	$500$

To determine

(c)

At a price $\$10$ per can, is the equilibrium a surplus or a shortage and how large is it Table shows the hypothetical monthly demand and supply of schedules for can of macadamia in Hawaii

Price	QUANTITY DEMANDED(CANS)	QUANTITY SUPPLIED(CANS)
$\$6$	$700$	$100$
$\$7$	$600$	$200$
$\$8$	$500$	$300$
$\$9$	$400$	$400$
$\$10$	$300$	$500$