the table shows the demand and supply schedules for running shoes. what is the equilibrium price and…

the table shows the demand and supply schedules for running shoes. what is the equilibrium price and equilibrium quantity of running shoes? the equilibrium price of a pair of running shoes is $ and the equilibrium quantity is pairs a week. now a rise in the price of gym membership decreases the quantity demanded by 200 pairs a week at each price. does a surplus or a shortage occur at the original equilibrium price? how does the market return to equilibrium? at the original equilibrium price, a ______ occurs. to return to equilibrium, the price of a pair of running shoes ______. a. surplus, rises b. shortage, rises c. shortage, falls d. surplus, falls as the market returns to equilibrium, how do the quantity demanded and the quantity supplied change? the quantity demanded ______ and the quantity supplied ______. a. decreases, decreases b. increases, decreases c. increases, increases d. decreases, increases what is the new equilibrium price? the new equilibrium price is $ a pair.

the table shows the demand and supply schedules for running shoes. what is the equilibrium price and equilibrium quantity of running shoes? the equilibrium price of a pair of running shoes is $ and the equilibrium quantity is pairs a week. now a rise in the price of gym membership decreases the quantity demanded by 200 pairs a week at each price. does a surplus or a shortage occur at the original equilibrium price? how does the market return to equilibrium? at the original equilibrium price, a ______ occurs. to return to equilibrium, the price of a pair of running shoes ______. a. surplus, rises b. shortage, rises c. shortage, falls d. surplus, falls as the market returns to equilibrium, how do the quantity demanded and the quantity supplied change? the quantity demanded ______ and the quantity supplied ______. a. decreases, decreases b. increases, decreases c. increases, increases d. decreases, increases what is the new equilibrium price? the new equilibrium price is $ a pair.

Answer

Explanation:

Step1: Identify equilibrium

Equilibrium occurs when quantity demanded equals quantity supplied. From the table, when price is $90.00, quantity demanded is 700 and quantity supplied is 700.

Step2: Analyze change in demand

A rise in gym - membership price decreases quantity demanded by 200 at each price. At the original equilibrium price of $90.00, new quantity demanded is 700 - 200=500 and quantity supplied is 700. So there is a surplus. To return to equilibrium, price will fall.

Step3: Determine new equilibrium

As price falls, quantity demanded increases and quantity supplied decreases. We need to find the new price where new quantity demanded (original quantity demanded - 200) equals quantity supplied. When price is $80.00, original quantity demanded is 800, new quantity demanded is 800 - 200 = 600 and quantity supplied is 600.

Answer:

The equilibrium price of a pair of running shoes is $90 and the equilibrium quantity is 700 pairs a week. At the original equilibrium price, a surplus occurs. To return to equilibrium, the price of a pair of running shoes falls. (Answer for multiple - choice: D. surplus, falls) As the market returns to equilibrium, the quantity demanded increases and the quantity supplied decreases. (Answer for multiple - choice: C. increases, decreases) The new equilibrium price is $80 a pair.