Supply and Demand Analysis:
Problem 1: Illustrate the market for a good by drawing the industry's demand and supply curves. On the graph, identify the equilibrium price and the equilibrium quantity. Be sure to label all axes and curves.
Problem 2: If the market price is less than the equilibrium price, what is the relationship of quantity supplied to quantity demanded? What will happen to the price?
Problem 3: If the market price is greater than the equilibrium price, what will be created in the market, and what will happen to the price?