Learning Module for Applied Economics

ABM01 – Applied Economics

Lesson 3 - SEATWORK

Name Date
Grade Section Score

Activity 1

Activity 2

Rather than have you read more about shortage and surplus, we’d prefer to have you
practice what you’ve learned so far and see for yourself if you understand it.
These questions allow you to get as much practice as you need. Write the correct
answer for each item.

Consider a situation without any

government interventions and no rocie
controls. In that case,
1. Equilibrium quantity is _______.
2. Equilibrium price is __________.
Now suppose that the government
imposes a Price Ceiling equal to 6! As a
result of this new policy,
3. Quantity demanded is ______.
4. Quantity supplied is ________.
5. As a result of this Price Ceiling the
market is experiencing _________
(shortage/ surplus/ non-binding).
 Learning Module for Applied Economics
Activity 3

A. Determine the price equilibrium and quantity equilibrium, using the following equation.
Show your solutions.
Qs = 33 + 10P
Qd = 68 – 6P

P Qs Qd
6
5
4
3
2
1

B. Solve by using the equation: P = 50 – 10Qd

P Qd
10
15
20
25
30
35
40
45
50

C. Solve for missing, using Qs = 100 + 2P.

P Qs
100
90
80
70
60
50
40
30
20

STAY SAFER THAN BEFORE!!!