A. The demand and supply schedules for potato chips are: (5*2-10) Surplus (+) Price (Cents per Quantity demanded (Millions Quantity supplied (Millions of Or bag of bags per week) bags per week) Shortage (-) 150 170 130 160 160 140 170 150 150 180 140 160 190 130 170 100 120 180 1. Draw a graph of the potato chip market. 2. What is the equilibrium price and equilibrium quantity? 3. Fill in the surplus- shortage column. 4. Why will 90C a bag not be the equilibrium price in this market? 5. "Surpluses drive prices up; shortages drive them down". Do you agree? B. Graph the supply and demand curves for the breakfast cereal market, labeling the current equilibrium price and quantity. Explain whether there is a movement/ shift in the demand curve, the supply curve, or both/ neither and why? Then show the effect on equilibrium price and quantity of each of the following changes (consider each separately): (5 * 2-10) 1. The price of breakfast muffins rises. 2. The price of wheat rises. 3. There is a change in technology that makes production less expensive. 4. Consumers expect that cereal prices will be higher in the future. 5. There is a new study indicating that eating breakfast cereals is unhealthy