Quantity Demanded 1150 950 750 550 350 Price $40 60 80 100 120 Quantity Supplied 250 500 750 1000 1250 Amount of Surplus/Shortage a. Calculate the amount of surplus/shortage at each price in the above table. b. Draw the above demand and supply schedules on one graph. Label axes, the two curves and the value of equilibrium price and equilibrium quantity. c. Using the graph for (b), show what would happen to supply if more competitors entered the market. Label the curve S2. Also, show what would happen to demand if consumers' income increased and this is a normal good. Label it D2. d. Now assume the government establishes a price floor of $100. Would this government involvement cause a surplus or shortage in the market?

a. Calculate the amount of surplus/shortage at each price in the above table. b. Draw the above demand and supply schedules on one graph. Label axes, the two curves and the value of equilibrium price and equilibrium quantity. c. Using the graph for (b), show what would happen to supply if more competitors entered the market. Label the curve \$2. Also, show what would happen to demand if consumers' income increased and this is a normal good. Label it D2. d. Now assume the government establishes a price floor of $100. Would this government involvement cause a surplus or shortage in the market