Given the table below, graph the demand and supply curves for flashlights. Make certain to label the equilibrium price and equilibrium quantity.
a. What is the equilibrium price and the equilibrium quantity?
b. Suppose the price is currently $5. What problem would exist in the market? What would you expect to happen to price? Show this on your graph.
c. Suppose the price is currently $2. What problem would exist in the market? What would you expect to happen to price? Show this on your graph.
Definitions:
Metal Ores
Minerals found in nature from which metals can be efficiently mined.
Minerals
Naturally occurring, inorganic substances with a definite chemical composition and crystalline structure.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded for an asset since its acquisition, reflecting its use and wear over time.
Initial Cost
The first financial outlay required to acquire an asset or start a project, including all necessary expenses to make it operational.
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