ECON 101 Midterm: Economics 101 Midterm 1
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Assume the following information for the demand and supply curves for good Z.
Price (in $) | Demand (in units) | SupplyĀ (in units) |
1 | 100 | 10 |
2 | 90 | 15 |
3 | 80 | 20 |
4 | 70 | 25 |
5 | 60 | 30 |
6 | 50 | 35 |
7 | 40 | 40 |
8 | 30 | 45 |
9 | 20 | 50 |
10 | 10 | 55 |
1. Draw the corresponding supply and demand curves.
2. What are the equilibrium price and quantity traded?
3. Would a price of $9 result in a shortage or a surplus? How large?
4. Would a price of $3 result in a shortage or a surplus? How large?
5. If the demand for Z increases by 15 units at every price, what would be the new equilibrium price and quantity traded be?
6. Given the original demand for Z, if the supply of Z were increased by 15 units at every price, what would be the new equilibrium price and quantity traded be?