Number 1.

DIRECTIONS: Short Answer Choose ONLY 2 of the following questions to respond to in paragraph form. Be sure to answer all parts of the question. (12 points) 1. Suppose you are a salad producer. Use the graph below to answer the questions: 10 a 8 6 Price per salad (in dollars) b 2 D 0 10 20 30 40 50 Quantity of salads a) What is the equilibrium price for salads (in dollars)? b) How much revenue do you expect from your salad sales? c) Is there a shortage or surplus of salads at $8? How many? d) How much revenue would you lose if you sold salads for $4? e) If quantity demanded increased by 10, what would the new equilibrium price be? f) If quantity supplied increased by 10, what would the new equilibrium price be