Following are the demand and supply schedules for chewing gum market

Quantity Quantity

Price demanded supplied

(rupees per pack) (millions of packs a week)

20 200 80

40 160 120

60 120 160

80 80 200

100 40 240

Draw a graph of the market for gum and mark in the equilibrium price and quantity.

Suppose that the price of gum is 70 a pack. Describe the situation in the gum market and explain how the price adjusts.

Suppose that the price of gum is 30 a pack. Describe the situation in the gum market and explain how the price adjusts.