1. The market equilibrium is shown by the intersection of the ____ curve and the ____ curve.

2. Excess demand occurs when the price is (less/greater) than the equilibrium price; excess supply occurs when the price is ____ (less/greater) than the equilibrium price.

3. Arrow up or down: An excess demand for a product will cause the price to ___. As a consequence of the price change, the quantity demanded will and the quantity supplied will____.

4. Arrow up or down: An excess supply of a product will cause the price to __. As a consequence of the price change, the quantity demanded will ___, and the quantity supplied will ____.

5. Interpreting the Graph. The following graph shows the demand and supply curves for CD players. Complete the following statements.

a. At the market equilibrium (shown by point____), the price of CD players is ____and the quantity of CD players is ____.
b. At a price of $100, there would be excess ____, so we would expect the price to ____.
c. At a price exceeding the equilibrium price, there would be excess ____, so we would expect the price to ____.
6. Draw and Find the Equilibrium. The following table shows the quantities of corn supplied and demanded at different prices.

a. Draw the demand curve and the supply curve.
b. The equilibrium price of corn is ____, and the equilibrium quantity is____.

Transcribed Image Text:

Supply S150 100 LI I Demand 0 100 CD players per day 200 260 Quantity Suppliec Quantity Demanded Price per Ton $ 80 90 100 110 600 800 1,000 1,200 1,200 1,100 1,000 900