Assignment:
Questions:
1. What determines the level of prices in a market?
2. What does a downward-sloping demand curvemean about how buyers in a market will react to a higherprice?
3. Will demand curves have the same exact shape inall markets? If not, how will theydiffer?
4. Will supply curves have the same shape in allmarkets? If not, how will they differ?
5. What is the relationship between quantitydemanded and quantity supplied at equilibrium? What isthe relationship when there is a shortage? What is therelationship when there is a surplus?
6. How can you locate the equilibrium point on ademand and supply graph?
7. If the price is above the equilibrium level, wouldyou predict a surplus or a shortage? If the price is belowthe equilibrium level, would you predict a surplus or ashortage? Why?
8. When the price is above the equilibrium, explainhow market forces move the market price toequilibrium. Do the same when the price is below theequilibrium.
9. What is the difference between the demand and thequantity demanded of a product, say milk? Explain inwords and show the difference on a graph with a demandcurve for milk.
10. What is the difference between the supply andthe quantity supplied of a product, say milk? Explainin words and show the difference on a graph with thesupply curve for milk.
Attachment:- Equilibrium in Markets for Goods.rar