At a market price of $0.25, a. price of Price per y Apple $2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 shortage; 5,500; bid up; $1.00 surplus; 1,000; lower, $1.00 shortage; 1,000; lower, $0.50 units exists. Buyers will tend to 0 1 2 3 4 5 6 7 Quantity of Apples (in thousands of bushels) surplus; 2,000; bid up; $0.50 Supply Demand the price until it reaches a At any price below $1.00 per apple, the market is out- of-equilibrium.

At a market price of $0.25, a of units exists. Buyers will tend to the price until it reaches a price of of units exists. Buyers will tend to the price until it reaches a shortage, 5,500; bid up; $100 surplus; 1,000; lower, $1.00 shortage; 1,000; lower, $0.50 surplus, 2,000; bid up; $0.50