Question

The equilibrium price in this market is _______ per calendar, and the equilibrium quantity is _______ calendars bought and sold per month. 

Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus, and whether this places upward or downward pressure on prices.

Answer 1

The market will be equilibrium where demond and supply curve intersect each other.therefore equilibrium price is $40 and the equilibrium quantity is $250 calender brought and sold per month.

80 Supply PRICE (Dolars per Calendar Demand 50 100 150 200 250 400 45000 QUANTITY (Calendars)

Price	Shortage or surplus	Shortage or surplus Amount	Pressure
$48	Surplus	200	Downward
$32	Shortage	200	Upward

Explanation:-

At price $48, supply is 350 units and demond is 150 units. Therefore Surplus availability of units in market is 200 (350-150) . Due to the price of units will be down (fall) to sell surplus units.

At price $32, Supply is 150 units and demond is 200 units ,therefore Shortage of units in market is 200 (350-150).Due to the price of units will be up(rise) to earn extra profit .