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Selling Price Quantity Demanded Quantity Supplied $300 0 21 $280 2 19 $260 4 17 $240 6 15 $220 8 13 $200 10 11 $180
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Selling
Price
Quantity
Demanded
Quantity
Supplied
$300
0
21
$280
2
19
$260
4
17
$240
6
15
$220
8
13
$200
10
11
$180
12
9
$160
14
7
$140
16
5
$120
18
3
$100
20
1
- From an examination of the above table and the associated graph, what is the approximate equilibrium price? __________
Selling Price | Quantity Demanded | Quantity Supplied |
$300 | 0 | 21 |
$280 | 2 | 19 |
$260 | 4 | 17 |
$240 | 6 | 15 |
$220 | 8 | 13 |
$200 | 10 | 11 |
$180 | 12 | 9 |
$160 | 14 | 7 |
$140 | 16 | 5 |
$120 | 18 | 3 |
$100 | 20 | 1 |
- From an examination of the above table and the associated graph, what is the approximate equilibrium quantity? [Please round any partial units down to the nearest whole unit.] ______
- If the government does not allow a price higher than $150 for widgets, approximately how many will be supplied in this market? ___________
- If the government does not allow a price higher than $150 for widgets, approximately how many will be demanded in this market? _________
- If the government does not allow a price higher than $150 for widgets, there will be a shortage of approximately how many units in this market? ________
- If the government does not allow a price any lower than $270 for widgets, approximately how many will be supplied in this market? _________
- If the government does not allow a price any lower than $270 for widgets, approximately how many will be demanded in this market? _________
- If the government does not allow a price any lower than $270 for widgets, there will be a surplus of approximately how many units in this market? _________
- The production of widgets requires a lot of labor. On the graph above, show how a substantial increase in wage rates would affect the supply or demand of widgets. This will require that you draw either another demand curve or another supply curve showing the change in the demand or supply of widgets as a result of the increase in labor costs. Also show which direction the supply or demand is shifting by drawing small arrows indicating the direction of the shift.
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