Define: demand, law of demand, substitution effect, income effect, supply, law of supply

Develop supply and demand curves using the following information:

Construct a vertical axis (rise axis)and a horizontal axis (run axis). Assign a value of 0 (zero) where they meet.

On the vertical axis list the following prices from bottom to top: $2, $4, $6, $8, $10, $12, and $14

On the horizontal axis list the following quantities from left to right: 10, 20, 30, 40, 50, and 60

Plot the data below on your graph, and answer the following questions: 1. At what price does equilibrium occur? 2. At what prices do surpluses occur? 3. At what prices do shortages occur?

Price $ Quantity Demanded Quantity Supplied

14 0 60

12 10 50

10 20 40

8 30 30

640 20

4 5010

260 0

Do not submit your graph, only the answers.

Finally, list several determinants of both supply and demand.