QUESTION 1.

Market for Apples. Suppose the total demand for apples and the total supply of apples per month are as shown in the following table. PRICE of Apples/bushel Bushels of Apples Supplied, Qs Bushels of Apples Demanded, Qd $12 4.0 7.0 $14 5.0 6.5 $16 5.5 6.2 $18 6.0 6.0 $20 6.3 5.8

1 A. Using graph paper, graph the demand for apples and the supply of apples using the data above.

Be sure to label the axes and curves of your graph correctly. Label equilibrium price, Pe, and equilibrium quantity, Qe.

sheet. 1 B. Is there a shortage or surplus at a Price of $12.00? Explain.

1 C. Is there a shortage or surplus at a Price of $20.00? Explain.