6. Use the following graph, which shows the local market demand and supply curves for lobsters, to answer the questions below the graph: Price $12 9 6 200 400 600 800 Quantity (pounds) a. What is the equilibrium price and what is the equilibrium quantity? P = $ Q= pounds b. At a price of $12, is there a surplus or shortage of lobsters, and how much is the surplus or shortage? Surplus or Shortage? How much? c. At a price of $3, is there a surplus or shortage of lobsters, and how much is the surplus or shortage? Surplus or Shortage? How much? 7. Show how each of the following changes in demand and/or supply affects equilibrium price and equilibrium quantity in a competitive market by first drawing the appropriate curve shift or shifts. Then state specifically whether price and quantity increase, decrease, or are indeterminate. (a) D (b) D S (c) D (d) P P P Q Q Q Q Supply decreases, Demand increases, Supply increases, Demand decreases, Demand constant Supply constant Demand constant Supply constant Price Price Price Price Quantity Quantity Quantity Quantity