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a) Graph the demand and supply curve for air pods. Show the equilibrium price and quantity on the graph? What are the equilibrium price and equilibrium quantity? Remember, price goes on the y-axis and quantity on the x-axis. (15points)
b) Add another column and show the surplus and shortage numbers of air pods at all prices (5points)
c) Does this table follow the law of demand and supply? Explain.(5points)
2. Consider the supply and demand schedules below to answer the questions that follow:
(a) Graph the demand and supply curve and show the equilibrium price, equilibrium quantity demanded, and quantity supplied be? (15points)
(b) If price were $3, what would happen? (Discuss in terms of adjustment to equilibrium from the graph you provided.) (5points)
(c) If price were $8, what would happen? (Discuss in terms of adjustment to equilibrium from the graph you provided.)-(5points)
(d) If price were $5, what would happen? (Discuss in terms of adjustment to equilibrium from the graph you provided.)-(5points)
3. The table below shows the quantity demanded and quantity supplied of DVDs at each price level.
(a) Fill out the column entitled Surplus/Shortage. Show how the answers are derived using Excel formulas.- (5points)
(b) Graph the demand and supply curve and show the equilibrium price, equilibrium quantity demanded, and quantity supplied? -. (15points)
(c) Suppose that advances in technology reduced the production cost of DVD players. What happens at the original equilibrium price level calculated in Part (a)? Use the graph you created to assist with your answers-(5points)
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