Answer only two of the following questions in no-less than one paragraphs each:

Question #1: If the price is above the equilibrium level, would you predict a surplus or a shortage? If the price is below the equilibrium level, would you predict a surplus or a shortage? Why?

Question #2: Identify three factors will cause the demand curve to shift and three factors that will cause the supply curve to shift.

Question #3: What is the effect of a price ceiling on the quantity demanded of the product? What is the effect of a price ceiling on the quantity supplied? Why exactly does a price ceiling cause a shortage?

Question #4: What is meant by equilibrium price and how is it established for a good or service?