Demand and Supply Part 1

The following figures are the demand and supply for leather jackets bought and sold from one clothing store:

Quantity

Demanded

Price per

Jacket

Quantity Supplied

Surplus/

Shortage

90

$170

60

85

$180

65

80

$190

70

75

$200

75

70

$210

80

65

$220

85

60

$230

90

Questions

1. Graph the date and determine the equilibrium price.

1. Fill in the surplus and shortage column.

1. On your graph, shade in the areas that represent a surplus or shortage.

1. Suppose the incomes of customers buying jackets rise. What might happen to the demand for jackets?

1. Suppose the costs of making jackets fall. What might happen to the supply of jackets?