2. Supply and demand exercise:

For each exercise you must draw a graph with the supply and demand curves. The following table presents the supply and demand plans for lobster. a. Draw a graph of the lobster market and identify the equilibrium point (price and quantity). b. Suppose the price of lobster is $20 per pound. Describe the market situation and explain how the price adjusts. c. Suppose the price of lobster is $8 per pound. Describe the market situation and explain how the price adjusts. d. If a company polluted the waters from which lobsters are obtained, and as a result the quantities change by 200 pounds at each price level, determine the market price and the quantity available on the market.

Price Quantity demanded Quantity offered ($ per pound) (pounds) (pounds) 25 100 800 20 300 700 15 500 600 10 700 500 5 900 400