equilibrium case study 1\nhooded sweatshirts for a local high school\ndemand and supply schedules\nprice…

equilibrium case study 1\nhooded sweatshirts for a local high school\ndemand and supply schedules\nprice quantity demanded quantity supplied\n$40 100 900\n$36 200 700\n$32 300 500\n$28 500 300\n$24 700 200\n$20 900 100\ndirections: please illustrate the demand and supply data listed above on a graph. make sure you label: price (p), quantity (q), demand (d), supply (s), and equilibrium (e).\nthen, answer these four questions:\na. what is the equilibrium price?\nb. what is the equilibrium quantity?\nc. how does this data support the law of demand?\nd. how does this data support the law of supply?

equilibrium case study 1\nhooded sweatshirts for a local high school\ndemand and supply schedules\nprice quantity demanded quantity supplied\n$40 100 900\n$36 200 700\n$32 300 500\n$28 500 300\n$24 700 200\n$20 900 100\ndirections: please illustrate the demand and supply data listed above on a graph. make sure you label: price (p), quantity (q), demand (d), supply (s), and equilibrium (e).\nthen, answer these four questions:\na. what is the equilibrium price?\nb. what is the equilibrium quantity?\nc. how does this data support the law of demand?\nd. how does this data support the law of supply?

Answer

Explanation:

Step1: Identify equilibrium

Equilibrium occurs when quantity demanded equals quantity supplied.

Step2: Find the equilibrium price

Looking at the table, when price is $28, quantity demanded (500) equals quantity supplied (300). So equilibrium price is $28.

Step3: Find the equilibrium quantity

At equilibrium price of $28, the quantity is 500 (since quantity demanded = quantity supplied at this price).

Step4: Analyze Law of Demand

The Law of Demand states that as price decreases, quantity demanded increases. In the table, as price goes from $40 to $20, quantity demanded increases from 100 to 900.

Step5: Analyze Law of Supply

The Law of Supply states that as price increases, quantity supplied increases. In the table, as price goes from $20 to $40, quantity supplied increases from 100 to 900.

Answer:

A. $28 B. 500 C. As price decreases from $40 to $20, quantity demanded increases from 100 to 900, which supports the Law of Demand. D. As price increases from $20 to $40, quantity supplied increases from 100 to 900, which supports the Law of Supply.