1. 2. 3. 4. In the diagram to the right, plot the following hypothetical supply and demand information for personal computers (PCs): Quantity Demanded (Qd-millions) Price (S) 2 7 $3,000 2.500 4 2,000 1,500 1,000 500 The equilibrium price "clears the market," in that quantity demanded equals quantity supplied. The equilibrium price =___________ 7 11 16 22 (1) Is there excess demand or excess supply? (2) How many million units? (3) Are PC inventories rising or falling? (4) Is the incentive to raise or lower price? Indicate whether equilibrium price (P) and quantity (Q) will rise (+) or fall (-) if.. Demand shifts right Demand shifts left Supply shifts right Supply shifts left (1) (2) (3) (4) Quantity Supplied (Qs - millions) At a price of $2,500.. 17 16 14 11 7 7 2 Price At a price of $1,000.. Price 3000 2500 2000 1500 1000 500 0 4812 12 16 20 24 Personal computers (millions) Quantity
1. 2. 3. 4. In the diagram to the right, plot the following hypothetical supply and demand information for personal computers (PCs): Quantity Demanded (Qd-millions) Price (S) 2 7 $3,000 2.500 4 2,000 1,500 1,000 500 The equilibrium price "clears the market," in that quantity demanded equals quantity supplied. The equilibrium price =___________ 7 11 16 22 (1) Is there excess demand or excess supply? (2) How many million units? (3) Are PC inventories rising or falling? (4) Is the incentive to raise or lower price? Indicate whether equilibrium price (P) and quantity (Q) will rise (+) or fall (-) if.. Demand shifts right Demand shifts left Supply shifts right Supply shifts left (1) (2) (3) (4) Quantity Supplied (Qs - millions) At a price of $2,500.. 17 16 14 11 7 7 2 Price At a price of $1,000.. Price 3000 2500 2000 1500 1000 500 0 4812 12 16 20 24 Personal computers (millions) Quantity
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
Problem 8PA
Related questions
Question
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3.
1.
4.
Market equilibrium worksheet
In the diagram to the right, plot the following hypothetical supply and demand information for personal computers (PCs):
Quantity Demanded
(Qd - millions)
Price
(S)
$3,000
2,500
2,000
1,500
1,000
500
The equilibrium price "clears the market," in that quantity demanded equals quantity supplied.
The equilibrium price =
2
4
7
11
16
22
(1) Is there excess demand or excess supply?
(2) How many million units?
(3) Are PC inventories rising or falling?
(4) Is the incentive to raise or lower price?
Indicate whether equilibrium price (P) and quantity (Q) will rise (+) or fall (-) if ...
Demand shifts right
Demand shifts left
Supply shifts right
Supply shifts left
(1)
(2)
(3)
(4)
Quantity Supplied
(Qs - millions)
17
16
14
11
At a price of $2,500...
7
2
Price
Price
3000
2500
2000
1500
1000
At a price of $1,000...
500
0
4 8 12 16 20 24
Personal computers (millions]
Quantity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e3cb781-bd12-4876-965f-bacc3314cb85%2F47fb94ba-badc-4051-ab5d-aa26a15a272f%2F94a9ue_processed.png&w=3840&q=75)
Transcribed Image Text:2.
3.
1.
4.
Market equilibrium worksheet
In the diagram to the right, plot the following hypothetical supply and demand information for personal computers (PCs):
Quantity Demanded
(Qd - millions)
Price
(S)
$3,000
2,500
2,000
1,500
1,000
500
The equilibrium price "clears the market," in that quantity demanded equals quantity supplied.
The equilibrium price =
2
4
7
11
16
22
(1) Is there excess demand or excess supply?
(2) How many million units?
(3) Are PC inventories rising or falling?
(4) Is the incentive to raise or lower price?
Indicate whether equilibrium price (P) and quantity (Q) will rise (+) or fall (-) if ...
Demand shifts right
Demand shifts left
Supply shifts right
Supply shifts left
(1)
(2)
(3)
(4)
Quantity Supplied
(Qs - millions)
17
16
14
11
At a price of $2,500...
7
2
Price
Price
3000
2500
2000
1500
1000
At a price of $1,000...
500
0
4 8 12 16 20 24
Personal computers (millions]
Quantity
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