me Left 14327 lindsey gregory Attempt 2 Figure 417 Price 10

me Left: 1:43:27 lindsey gregory: Attempt 2 Figure 4-17 Price 10 10 ) 7t … 4 15 19 20 24 25 1 234 5 6 7 89 1 Qantity Refer to Figure 4-17. At a price of S2, there is a surplus of 6 units. S5, there is a surplus of 25 units. S5, there is a shortage of S25 nse tus S7, there is a surplus of 4 units. Save

Solution

The market equlibrium price is $5 and equilibrium quantity is 5 units (the intersection of demand and supply curves).

At $2, quantity demanded is 8 units and quantity supplied is 2 units, there is shortage (8-2)=6 units.

At $5, the market is equilibrium . Quantity demanded is 5 and quantity supplied is 5. There is no surplus or shortage.

At $7,quantity demanded is 3 units and quantity supplied is 7 units, there is surplus (7-3)=4 units.

At