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 Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 16RQ: What is the relationship between quantity Demanded and quantity supplied at equilibrium? What is the...

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