Questions: In-class Assignment-4-chapter 4-the Supply Side of Markets

Discussion Questions

1. What do you mean by market condition?

2. Is there a special name for this price?

3. Can market equilibrium be illustrated graphically?(please make the graph and explain

4.Is the equilibrium price the price that makes buyers and sellers most happy?

( please make the graph and explain)

5. What is the effect of an increase in demand on equilibrium price and quantity?

(please make the graph and explain)

6. Will a decrease in demand lower the equilibrium price and quantity?

(please make the graph and explain)

In-Class Assignment-4-Chapter-4-The Supply Side of Markets What do you mean by market condition? Market condition describes the situation of the market in terms of the relation between the quantity demanded and the quantity supplied. If the quantity demanded (p) exceeds the quantity supplied (Qs) a shortage (or excess quantity demanded) exists in the market. Conversely, if the quantity supplied exceeds the quantity demanded, a surplus (or excess quantity supplied) exists in the market. If the quantity demanded equals the quantity supplied, the market has neither a shortage nor a surplus. The mar- ket is then said to be in equilibrium We can summarize market conditions as follows: 1. Q. > Q. a shortage exists. 2. 10.