BUYER WILLINGNESS TO PAY DAVID $8.50 LAURA $7.00 MEGAN $5.50 MALLORY $4.00 AUDREY $3.50 10. Refer to Table above. If the price of Vanilla Coke is $6.90, who will purchase the good? A) All five would purchase Vanilla Coke, just in different amounts. B) Megan, Mallory and Audrey C) David, Laura and Megan D) David and Laura

III. Answer the questions based on the table below:

Price of bags (RO) Quantity demanded Quantity supplied 100 70 30 200 60 40 300 50 50 400 40 60 500 30 70 600 20 80

i. Equilibrium price_________

ii. Equilibrium quantity______________

iii. If the price of the bags were RO500, is there a surplus or a shortage? ______

iv. How many units of surplus or shortage are there? ______

v. Will this cause the price to rise or fall? ______

vi. What happens if the price of bags were RO 600? Will the price rise or fall then? ______