At a market price of [tex]$0.25, a.
Buyers will tend to.
of
units exists.
the price until it reaches a price of
Price per
Apple
$[/tex]2.00
[tex]$1.75
$[/tex]1.50
[tex]$1.25
$[/tex]1.00
[tex]$0.75
$[/tex]0.50
[tex]$0.25
Supply
Demand
0 1 2
3 4
5 6 7
At any price
below $[/tex]1.00
per apple, the
market is out-
of-equilibrium.
Quantity of Apples (in thousands of bushels)
O surplus; 1,000; lower; [tex]$1.00
shortage; 5,500; bid up; $[/tex]1.00
a) surplus 1000 lower $1.00
b) shortage 5500 bid up 1.00
c) shortage 5500 bid up .50
d) surplus, 2000 bid up. .50
