Lesson 3 Assignment

Quantity Demanded	Price	Quantity Supplied	Surplus / Shortage
85	$3.40	65
80	3.70	70
75	4.00	75
70	4.30	80
65	4.60	85
60	4.90	90

The above table represents the market for pineapples.

1. Fill in the numerical values in the Surplus / Shortage column.

1. What is the equilibrium price? What is the equilibrium quantity? Explain your answers using the Surplus/Shortage column.

1. Draw a graph using the data in the table.

1. Suppose the government places a price floor of $4.60 in this market for pineapples. Show this price floor on your graph and explain the effect it will have on the market.

1. Suppose the government places a price ceiling of $3.70 in this market for pineapples. Show this price ceiling on your graph and explain the effect it will have on the market.