3 Use the graph labeled Graph 3 a If the price is 17 what is

3. Use the graph labeled Graph 3.

a. If the price is $17, what is the quantity supplied?

b. If the price is $11, do we have a surplus or a shortage? Of how many units?

c. If the price is $25, do we have a surplus or a shortage? Of how many units?

Edit View History Bookmarks Window Help mozart.sandhills.edu Course: ECO252-N01 Principles of... mozart.sandhills.edu/skurac/ECO2... hills.edu/skurac/ECO2. moz ook Use the following graph to answer question 3 of HW 1 (Module 1) Graph 3 $24 - $17 $11 --- AD 18 25 27 35 37

Solution

a.When price is 17 quantity supplied is 27.

b.At price $11, demand=35 and supply=25. Since demand> supply we have a shortage of 10 units.

c.At price $25, demand=18 and supply=37. Since supply> demand we have a surplus of 19 units