What is a shortage or surplus in the market?
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Market equilibrium and disequilibrium
The following graph shows the monthly demand and supply curves in the market for shirts.
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.
The equilibrium price in this market is ........ per shirt, and the equilibrium quantity is........ shirts 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 Shortage or Surplus Amount Downward/Upward
(Dollars per shirt) (Shirts)
40 ........... .......... ............
60 ........... .......... ............
Use the graph input tool to help you answer the following questions. Enter an amount into the Price field to see the quantity demanded and quantity supplied at that price.
The equilibrium price in this market is $_____ per teapot and the equilibrium quantity is _____ teapots 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 and downward pressures on prices.
13) If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a in the market and the price will A) surplus; rise B) shortage, rise C) surplus; fall D) shortage; fall E) surplus; either rise or fall depending on whether supply increases to meet the surplus
