Suppose that the demand and supply schedules for a good X are as follows:

Price Quantity Demanded of good Z per Month Quantity Supplied of Z per Month

SR 5 60 100

SR 4 80 80

SR 3 100 60

SR 2 120 40

SR 1 140 20

a. Given the table above, draw the demand and supply curves using Excel.

b. Show and label the equilibrium price and equilibrium quantity on the graph.

c. Suppose the price is currently 5 riyals. What problem would exist in the market (i.e. shortage or surplus)? What would you expect to happen to price? Show this on your graph above (Don't draw a new graph).

d. Suppose the price is currently 2 riyals. What problem would exist in the market (i.e. shortage or surplus)? What would you expect to happen to price? Show this on your graph above (Don't draw a new graph).