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The table below presents the average monthly demand and supply of 4' x 8' sheets of plywood from a typical home building supply store. In
The table below presents the average monthly demand and supply of 4' x 8' sheets of plywood from a typical home building supply store. In any month when coastal states such as Florida are threatened by hurricanes, the typical monthly demand for plywood increases by 400 sheets at every price. Imagine Florida passes a "price gouging" law that prevents home building supply stores from raising the price of plywood when hurricanes threaten Market for Plywood Initial Quantity of Initial Quantity of Plywood New Quantity Plywood Price Demanded (dollars) (sheets) Supplied (sheets) of Plywood Desanded (sheets) $10 5,900 3,100 6,300 11 5,700 3,300 6,100 12 5,500 3,500 5,900 13 5,300 3,700 5,700 14 5,100 3,900 5,500 15 4,900 4,100 5,300 16 4,700 4,300 5,100 37 4,500 4,500 4,900 18 4,300 4.700 4,700 19 4,100 4,900 4,500 20 3,900 5,100 4,300 21 5,700 5,300 4,100 Instructions: Enter your answers as a whole number a. When there are no hurricanes threatening Florida, and without the "price gouging law in place, what are the equilibrium price and quantity in the plywood market
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