Chapter 6 Price Equilibrium Graph

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Chapter 6 Price Equilibrium Graph

  1. 1. Price Demand Supply Supply Demand .... Shift Shift 5 1100 5 1000 200 0 10 5 15 400 0 20 900 500 5 25 600 0 30 800 5 750 700 0 I 35 5 45 600 800 I 50 400 850 100 200 300 400 500 600 700 ~OO 900 1000 NtJMBER OF UNITS 2. An outside producer wants to sell similar products at $45/unit. How many would consumers be willing to buy at this price? units How many would sellers be willing to sell at this price? units How many would remain unsold at this price (surplus)? units 3. A foreign consumer group offers to buy these products, but will only pay $25/unit. How many might be available at this price? units How many might these foreigners purchase at this price? units How many orders will go unfilled at this price (shortage)? units 5. April 15th income tax surcharges take money out of consumers' pockets, creating a 25% decrease in demand at each price level. Complete the chart and plot the new demand curve (01).

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