Question 1
The table shows the quantity of mystery books that is demanded and supplied at various prices.
| Price | Quantity Demanded | Quantity Supplied |
| 5.00 | 60 | 39 |
| 5.25 | 52 | 41.5 |
| 5.50 | 44 | 44 |
| 5.75 | 36 | 46.5 |
| 6.00 | 28 | 49 |
Assume that at each price, quantity demanded decreases by 2.5 and quantity supplied increases by 8. What is the new equilibrium price and quantity?
◦ $5.25, 49.5
◦ $5.75, 49.5
◦ $5.25, 54.5
◦ $5.75, 54.5
Question 2
Effects of Surplus
The table shows the quantity of stuffed animals that are demanded and supplied at various prices:
| Price | Quantity Demanded | Quantity Supplied |
| 1 | 96 | 21 |
| 2 | 84 | 34 |
| 3 | 72 | 47 |
| 4 | 60 | 60 |
| 5 | 48 | 73 |
| 6 | 36 | 86 |
Suppose the market price is set to $3. This market has a ________ (shortage/surplus) of stuffed animals equal to ________.
Suppose the market price is set to $6. This market has a ________ (shortage/surplus) of stuffed animals equal to ________.
◦ shortage, 25, shortage, 50
◦ surplus, 25, shortage, 50
◦ surplus, 25, surplus, 50
◦ shortage, 25, surplus, 50
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