Refer to the table below containing the market demand and supply schedules for leather jackets.

a. Draw a graph showing the market demand and supply curves, D and S₀, and the associated equilibrium point. Use the line tools provided to plot only the 2 endpoints of each curve. Indicate each equilibrium point with the tool provided.

b. The equilibrium price is $ ___ and the equilibrium quantity is ___ jackets.

c. Due to an increase in the number of producers, the annual quantity supplied in this market increases by 60,000 jackets at every price.

The new equilibrium price is $ ____ and the new equilibrium quantity is ____ jackets.

Transcribed Image Text:

Quantity Demanded (jackets per year) 60,000 70,000 80,000 90,000 100,000 Price Quantity Supplied (jackets per year) 90,000 70,000 50,000 30,000 ($ per jacket) $350 300 250 200 150 10,000 Quantity Demanded (jackets per year) 60,000 70,000 80,000 90,000 100,000 Price Quantity Supplied (jackets per year) 90,000 70,000 50,000 30,000 ($ per jacket) $350 300 250 200 150 10,000

Answer rating: 100% (QA)

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