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Question: 100 marks 1 graph the data from both the demand...

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100 Marks 1. Graph the data from both the demand and supply schedule on the area provided. Then complete the questions at the bottom. (8 marks) Quantity of Boomerangs Quantity of Boomerangs Demanded Price of Boomerangs 10dSupplied $2 $4 $6 $8 $10 4 10 a. Draw a dashed line at $4 all the way across the chart. If our product hits the market for sale at $4, what market situation will be present: shortage or surplus? What is the size of the shortage/ surplus? (4 marks)
Dr. A b. What is the equilibrium price in the boomerang market? How many (Q) will be sold price? (4 marks) at this a. c. If boomerangs become more popular and the public demands 4 more boomerangs at all possible prices, what will be the new equilibrium price. Draw the change in demand on the graph above. (2 marks)
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