Reference no: EM133128298
Define: demand, law of demand, substitution effect, income effect, supply, law of supply
Develop supply and demand curves using the following information:
Construct a vertical axis (rise axis) and a horizontal axis (run axis). Assign a value of 0 (zero) where they meet.
On the vertical axis list the following prices from bottom to top: $2, $4, $6, $8, $10, $12, and $14
On the horizontal axis list the following quantities from left to right: 10, 20, 30, 40, 50, and 60
Plot the data below on your graph, and answer the following questions: 1. At what price does equilibrium occur? 2. At what prices do surpluses occur? 3. At what prices do shortages occur?
Price $ Quantity Demanded Quantity Supplied
14 0 60
12 10 50
10 20 40
8 30 30
6 40 20
4 50 10
2 60 0
Do not submit your graph, only the answers.
Finally, list several determinants of both supply and demand.