MARKET EQUILIBRIUM 1

1. what is market equilibrium (2)

2. what is market disequilibrium (2)

3. when does surplus occur (2)

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4. when does shortage occur (2)
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5.

Price ($) Quantity demanded Quantity supplied

200 150 20
300 120 60
400 100 100
500 80 150
600 60 200

a. DRAW the diagram showing the market equilibrium

b. Market equilibrium happens when the price is _____________
c. The quantity equilibrium is _____________
d. Surplus happens when the price at _____________
e. Shortage happens at price_____________
f. Calculate the surplus at $ 600 _____________
g. Calculate the shortage at $ 300 _____________
h. When the price is 500 excess demand/excess supply occurs.
i. When price is 200 excess demand/excess supply occurs
j. Draw diagram and show the surplus and shortage
MARKET EQUILIBRIUM 2

Below is demand and supply schedule for chocolate per bar

Price ($) Quantity demanded Quantity supplied
3 70 20
5 60 40
7 50 50
9 40 60
11 30 70

a. DRAW the diagram showing the market equilibrium

b. Market equilibrium happens when the price is _____________
c. The quantity equilibrium is _____________
d. Surplus happens when the price at _____________
e. Shortage happens at price_____________
f. Calculate the surplus at $ 9 and 11 _____________
g. Calculate the shortage at $ 5 and 3 _____________
h. When the price is 9 excess demand/excess supply occurs.
i. When price is 5 excess demand/excess supply occurs
j. Draw diagram and show the surplus and shortage
MARKET EQUILIBRIUM 3

Below is demand and supply schedule for apples per kg

Price ($) Quantity demanded Quantity supplied
10 600 50
12 550 200
14 300 300
16 200 400
18 100 500

a. DRAW the diagram showing the market equilibrium

b. Market equilibrium happens when the price is _____________
c. The quantity equilibrium is _____________
d. Surplus happens when the price at _____________
e. Shortage happens at price_____________
f. Calculate the surplus at $ 16 and 18 _____________
g. Calculate the shortage at $ 10 and 12 _____________
h. When the price is 10 excess demand/excess supply occurs.
i. When price is 18 excess demand/excess supply occurs
j. Draw diagram and show the surplus and shortage