This Question Deals with Demand and Supply and Refers You

question 20

Essay

This question deals with demand and supply and refers you to the table below.
a.Given the table, graph the demand and supply curves for flashlights. Make certain to label equilibrium price and equilibrium quantity.
$$\begin{array} { | l | c | c | } \hline \text { Price } & \text { Quantity DemandedMunth } & \text { Quantity Supplied/Manth } \\\hline \$ 5 & 6,00 [ & 10,000 \\\hline 4 & 8,000 & 8,000 \\\hline 13 & 10,000 & 6,000 \\\hline 12 & 12,000 & 4,000 \\\hline 11 & 14,000 & 2,000 \\\hline\end{array}$$
b.What is the equilibrium price and equilibrium quantity?
c.Suppose the price is currently at $5. What problem would exist in the economy? What would you expect to happen to price? Show this on your graph.
d.Suppose the price is currently $2. What problem exists in the economy? What would you expect to happen to price? Show this on your graph.

---

Definitions:

Power

The ability or capacity to influence or control the behavior of others or the course of events.

Need for Affiliation

A psychological term denoting an individual's desire to build relationships and feel connected to others.

Excel

A spreadsheet program developed by Microsoft that allows users to organize, format, and calculate data with formulas using a system of rows and columns.

Well-developed Capacity

A high level of readiness and ability in an organization or system to effectively carry out its operations or tasks.