A CLASSROOM MARKET FOR COCOA LESSON 4 ACTIVITY 4.6 The Market for Socks Consider the following diagram in an n answering the following questions. Demand $10 Supply $8 Price of Socks $4 $2 1,000 2,0 3,000 4,000 5,000 6,000 7,000 Quantity of Socks 1. What is the quantity demanded by buyers and supplied by sellers at each price? Price Quantity Quantity Demanded Supplied $10 4000 5020 $8 2000 4:00 $6 3,20 0 3:00 $4 4000 200 $2 100LESSON 4 A CLASSROOM MARKET FOR COCOA ACTIVITY 4.6 (Continued) 2. State a price at which there would be a surplus of socks and explain why. 3. State a price at which there would be a shortage of socks and explain what is likely to happen to the price of socks as a result of this shortage. 4. What is the market-clearing or equilibrium price of socks? Explain why. 5. What is the equilibrium quantity of socks that would be exchanged? 6. Explain why some buyers would think the equilibrium price of socks is too high and some sellers would think the equilibrium price is too low