Consider the Supply and Demand Schedules Below to Answer the Questions

question 18

Essay

Consider the supply and demand schedules below to answer the questions that follow:
$\begin{array}{ccc}\text {price }&\text {qty.demanded }&\text {qty. supplied }\\\hline \$10 & 0 & 10 \\9 & 1 & 9 \\8 & 2 & 8 \\7 & 3 & 7 \\6 & 4 & 6 \\5 & 5 & 5 \\4 & 6 & 4 \\3 & 7 & 3 \\2 & 8 & 2 \\1 & 9 & 1\end{array}$
(a)In a free market,what will the equilibrium price be?
(b)What will the equilibrium quantity demanded and quantity supplied be?
(c)If price were $2,what would happen? (Discuss in terms of adjustment to equilibrium.)
(d)If price were $7,what would happen? (Discuss in terms of adjustment to equilibrium.)
(e)If price were $5,what would happen? (Discuss in terms of adjustment to equilibrium.)

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Definitions:

Fallacy of Context

An error in reasoning where the context necessary to understand or properly apply an argument is ignored or misrepresented.

Division

A process in mathematics of distributing a group of things into equal parts or a method in logic of breaking down categories into smaller subcategories.

Hasty Generalization

A fallacy where a conclusion is not logically justified by sufficient or unbiased evidence.

Fallacy of Logical Structure

A type of logical error where an argument's structure is flawed, leading to invalid conclusions.