Suppose that in a later market period, the quantities supplied in the table in Problem 3-1 are unchanged. The amount demanded, however, has increased by 30 million at each price. Construct the resulting demand curve in the illustration you made for Problem 3-1. Is this an increase or a decrease in demand? What are the new equilibrium quantity and the new market price? Give two examples of changes in ceteris paribus conditions that might cause such a change.
In Problem 3-1
Suppose that in a recent market period, the following relationship existed between the price of tablet devices and the quantity supplied and quantity demanded.
Price ______Quantity Demanded _______Quantity Supplied
$330 ............... 100 million ........................ 40 million
$340 ................ 90 million ........................ 60 million
$350 ................ 80 million ........................ 80 million
$360 ................ 70 million ....................... 100 million
$370 ................ 60 million ....................... 120 million