Micro Topic 2.7 Market Disequilibrium Part 1 - Check Your Understanding- The demand and supply schedules for backpacks are given below. Graph the information in the table and answer the questions. Price Quantity Quantity Demanded Supplied $10 200 100 $15 150 120 $20 130 130 $25 100 140 1. What happens to the quantity demanded when the price increases from $10 to $25? Explain 2. What happens to the demand when the price increases from $10 to $25? Explain 3. Is there a shortage or surplus at the price of $10? Calculate it and show your work. 4. Is there a shortage or surplus at the price of $25? Calculate it and show your work. 5. If the current price is $15, what will likely happen to the price in the near future. Explain. 6. Explain why the equilibrium price is sometimes called the "market-clearing price". Part 2 - Check Your Understanding- The graph shows the Market for Ice Cream market for ice cream. The letters on the graph represent Supply enclosed areas. 7. Identify the equilibrium price and quantity. P4, Q3 8. Identify the consumer surplus and producer surplus at equilibrium. Cs - 2 , 5, Q, V x,y PS = L, M, N, K , D, F 9. Assume the supply for ice cream decreased resulting in mm an equilibrium price of P. Identify the consumer surplus. Demand 10. Assume instead that the demand for ice cream increased resulting in an equilibrium price of P. Identify the Q1 Q2 Q3 Q4 Qs Quantity producer surplus. N, x , LM , KO , F Video Help: https://youtube/VOLIOqUZm-c Copyright Jacob Clifford 2020. www.ACDCacon.com Annual license required. Do not use unless you have purchased a license