Assume the following information for the demand and supply curves for good Z.
a. Draw the corresponding supply and demand curves.
b. What are the equilibrium price and quantity traded?
c. Would a price of $9 result in a shortage or a surplus? How large?
d. Would a price of $3 result in a shortage or a surplus? How large?
e. If the demand for Z increased by 15 units at every price, what would the new equilibrium price and quantity traded be?
f. Given the original demand for Z, if the supply of Z were increased by 15 units at every price, what would the new equilibrium price and quantity traded be?