ECN211 Module 2

ECN211 Module 2 - 3_3P Microeconomics Professor Alan Wells...

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3_3P Page 1 Microeconomics Professor Alan Wells Module 2 3_3P a) $5 b) $3 c) $1 Price $5.00 $4.00 Quantity Demanded Al 1 2 Betsy 0 1 Casey 2 2 Daisy 1 3 Eddie 1 2 Market Total 5 10 Price $5.00 $4.00 Quantity Supplied Alice 3 3 Butch 7 5 Connie 6 4 Dutch 6 5 Ellen 4 2 Market Total 26 19 Shortage/Surplus 21 9 a) At a price point of $5.00 there would be a surplus of 21. b) At a price point of $3.00 there would be a smaller surplus of 3. c) At a price point of $1.00 there would be a shortage of 15 Given the following data, identify the amount of shortage or surplus that would exist at a price of: Conclusion: When the initial price of $5.00 was offered there was little demand due to the high price as the price shifted downward the demand increased until equilibrium was reached between the supply demanded the the actual supply until the price was so low that demand stripped the quantity available to nothing creating a market of consumers who will continue to demand the product at that price point.
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ECN211 Module 2 - 3_3P Microeconomics Professor Alan Wells...

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