Reflect and explain how supply and demand are graphed to illustrate shortages and surpluses.

Develop an imaginary scenario that would make a shortage and one that would make a surplus. In the first part of the assignment:

1. Define Equilibrium and how it is determined
2. Define consumer surplus and explain how it is graphed
3. Define consumer shortage and explain how it is graphed
4. Explain the difference between consumer surplus and shortage
5. Explain how consumer shortages and surpluses relate to the Equilibrium price
6. Give an overview of each scenario and explain why it results in a shortage or a surplus
7. Draw a graph for each scenario, label the shortage or surplus in the graph.

In the second part of the assignment, explain the following in paragraph form:

1. How elasticity is related to surpluses and shortages
2. How surpluses impact price and supply
3. How shortages impact price and supply
4. How demand can cause both a surplus and a shortage