Equilibrium price and quantity We are given the market information of phone as below: Price ($) Quantity Demanded Quantity Supplied 200 26,000 12,000 245 23,000 16,000 290 20,000 20,000 335 17,000 24,000 380 14,000 28,000 a) Define the market demand equation and supply equation. b) Find the equilibrium price and quantity in a market c) Draw the graph to show this market. Equilibrium price and quantity • We are given the market information of pizza as below: 5 Supply 3 a) Define the market demand equation and supply equation. 2.50 2 Demand b) Estimate the consumers’ surplus, producers' surplus 2 4 6 8 10 Quantity (1,000s of slices/day) and total market's surplus Price ($/slice)

Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway. The economies of some major oil-using nations, like Japan, slow down. A war in the Middle East disrupts oil-pumping schedules. Landlords install additional insulation in buildings. The price of solar energy falls dramatically. Chemical companies invent a new, popular kind of plastic made from oil.

How does one analyze a market where both demand and supply shift?

Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburger? Why or why not? Illustrate your answer with a graph.

In an analysis of the market for paint, an economist discovers the facts listed below. State whether each of these changes will affect supply or demand, and in what direction. There have recently been some important cost-saving inventions in the technology for making paint. Paint is lasting longer so that property owners need not repaint as often. Because of severe hailstorms, many people need to repaint now. The hailstorms damaged several factories that make paint, forcing them to close down for several months.