At a market price of \($0.25, a.
Buyers will tend to.
of
units exists.
the price until it reaches a price of
Price per
Apple
$\)2.00
\($1.75
$\)1.50
\($1.25
$\)1.00
\($0.75
$\)0.50
\($0.25
Supply
Demand
0 1 2
3 4
5 6 7
At any price
below $\)1.00
per apple, the
market is out-
of-equilibrium.
Quantity of Apples (in thousands of bushels)
O surplus; 1,000; lower; \($1.00
shortage; 5,500; bid up; $\)1.00
Asurplus 1000 lower $1.00
Bshortage 5500 bid up 1.00
Cshortage 5500 bid up .50
Dsurplus, 2000 bid up. .50
Buyers will tend to.
of
units exists.
the price until it reaches a price of
Price per
Apple
$\)2.00
\($1.75
$\)1.50
\($1.25
$\)1.00
\($0.75
$\)0.50
\($0.25
Supply
Demand
0 1 2
3 4
5 6 7
At any price
below $\)1.00
per apple, the
market is out-
of-equilibrium.
Quantity of Apples (in thousands of bushels)
O surplus; 1,000; lower; \($1.00
shortage; 5,500; bid up; $\)1.00
Asurplus 1000 lower $1.00
Bshortage 5500 bid up 1.00
Cshortage 5500 bid up .50
Dsurplus, 2000 bid up. .50