Econ 195 Name: Homework #2 Dr. Yamoah Score: MO points Madison College Answer all questions (Chapter 3) 1. Use the demand and supply schedules provided below to draw the demand and supplyI curves for the market for TV sets. Price perT'ur sets {5;} Quantities Demanded Quantities Supplied {1005} [1005] $0 70 0 $100 50 0 $200 50 10 a. Draw the demand and supply curves on the grid below. Label the demand curve {D} and the Supply curve (5). Label the price axis using [P] and the Quantity axis {(1). b. The market equilibrium price is S and the market equilibrium quantity is TV sets. c. Assume the price of TV sets is 5200. There will be a (shortagelsurplusl of TV sets in the market. How will the market price adjust in this case if there are no market or government restrictions? [It will increase, it will decrease, it will stay at 5200}. d. Assume the price ofTV sets is 5500. There will be a {shortagelsurplus} of TV sets in the market. How will the market price adjust in this case if there are no market or government restrictions? (It will increase, it will decrease, it will stay at $500}