Question: a. The below has two Quantity Columns, but it does not indicate which column represents supply and which represents demand. Indicate which label should be used for Columns 2 and 3: Supply or Demand.

b. On your own graph paper, graph the demand and supply relationships shown in the example above. Label demand as "Di" and supply as "St." Be sure to follow the labeling requirements of economic graphs as illustrated in your textbook.

c. What is the: i) Equilibrium price? ii) Equilibrium quantity?

d. If we impose a price of $80.00 upon this market, the result will be a (surplus or shortage) of units.

e. Suppose that an increase in income causes demand to increase by 200 units at each price level

1. Using the column labeled "D2" in the original table, write in the new demand schedule. ii) Draw the new demand curve on your graph and label it "D2."

iii) What is the new equilibrium price?

iv) What is the new equilibrium quantity?

v) Because of the increase in income, demand increased by 200 units at every price level, but equilibrium quantity increased by units.

vi) What is the amount of the change in equilibrium price?

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