a. b. PRICE OF TUTORING (per hour) $40 $20 $50 45 40 30 25 20 10 5 0 25 SHIFT of demand Initial demand Market supply 50 75 100 QUANTITY (hours per semester) Figure 1 New demand 125 6. Using the "new demand" in Figure 1 as a guide, determine the market surplus or shortage that would exist at a price of 150 Demand shifts if -Tastes change. -Incomes change. Price/availability of other goods change. + Expectations change.

Figure 1 6. Using the "new demand" in Figure 1 as a guide, determine the market surplus or shortage that would exist at a price of a. $40 b. $20