1. Business
  2. Economics
  3. 3 consider the following hypothetical supply and demand schedules for...

Question: 3 consider the following hypothetical supply and demand schedules for...

Question details

3. Consider the following hypothetical supply and demand schedules for the newest smartphone at USF.

Supply Schedule Demand Schedule

Price Quantity Price Quantity

700 10,000 700 1,000

650 8,000 650 2,000

600 6,000 600 3 000

550 4,000 550 4,000

500 2,000 500 5,000

a. What is the equilibrium price and quantity? Briefly explain using the table.

b. At a price of 500, is there a shortage or a surplus of smartphones? What is the size of the shortage/surplus? Briefly explain using the table.

c. At a price of 650, what is the size of the shortage/surplus? Briefly explain using the table.

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution