4 The monthly supply and demand data for Brand Q jcans is ou

4. The monthly supply and demand data for \"Brand Q jcans is outlincd in the table below PriceQty Qty Demand Supply 700 1100 1000 100 900 1 900 90 800 1000 100 a. Equilibrium price is equal to b.Equilibrium quantity is equal to .Assume i in this markct? that the price of Brand Q jeans was set at $120. Would there be a shortage or surplus d. How large would this shortage or surplus be?

Solution

4) a) Equilibrium price is equal to $100. (Because at this price the demand and supply of jeans are equal)

b) Equilibrium quantity is equal to 900.

c) If the price of the branded jeans was equal to $120 there will be a \"surplus\" of jeans in the market.

d) There will be a surplus of 400 units of jeans.