The weekly demand and supply schedules for T-shirts (in millions) in a free market are as follows: Price Quantity Demanded Quantity Supplied 8 6 18 7 8 16 6 10 14 5 12 12 4 14 10 3 16 8 2 18 6 1 20 4 1. What is the demand curve? What does the law of demand say? 2. What is the supply curve? What does the law of supply say? 3. What are the equilibrium price and quantity? 4. Assume that changes in fashion cause the demand for T-shirts to rise by 4 million at each price. What will be the new equilibrium price and quantity? Has equilibrium quantity risen as much as the rise in demand? Explain why or why not. 5. Now plot the data in the table and mark the equilibri
The weekly demand and supply schedules for T-shirts (in millions) in a free market are as follows: Price Quantity Demanded Quantity Supplied 8 6 18 7 8 16 6 10 14 5 12 12 4 14 10 3 16 8 2 18 6 1 20 4 1. What is the demand curve? What does the law of demand say? 2. What is the supply curve? What does the law of supply say? 3. What are the equilibrium price and quantity? 4. Assume that changes in fashion cause the demand for T-shirts to rise by 4 million at each price. What will be the new equilibrium price and quantity? Has equilibrium quantity risen as much as the rise in demand? Explain why or why not. 5. Now plot the data in the table and mark the equilibri
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 21P
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Question
The weekly demand and supply schedules for T-shirts (in millions) in a free market are as follows:
Price |
Quantity Demanded |
Quantity Supplied |
8 |
6 |
18 |
7 |
8 |
16 |
6 |
10 |
14 |
5 |
12 |
12 |
4 |
14 |
10 |
3 |
16 |
8 |
2 |
18 |
6 |
1 |
20 |
4 |
1. What is the demand curve? What does the
2. What is the supply curve? What does the law of supply say?
3. What are the
4. Assume that changes in fashion cause the demand for T-shirts to rise by 4 million at
each price. What will be the new equilibrium price and quantity? Has
quantity
5. Now plot the data in the table and mark the equilibrium. Also plot the new data
corresponding to (b).
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