The table shows the demand and supply schedules for milkshak

The table shows the demand and supply schedules for milkshakes. The equilibrium price of a milkshake it $ and the equilibrium quantity it milkshakes a week. If the price of a milkshake is $8.00 there is a of milkshakes. The price of a milkshake

Solution

1. The equilibrium price of milk shake is $7 and equilibrium quantity is 120 units.

2. If price of milk shake is $8, there is excess supply of milk shake.

3. When prce of milk shake is $7, quanitty demad is 120 units and quantity suppplied is 120 units and market moves ot an equilibrium.

4. Shortage, falls, decreases, increases $8