Market Equilibrium The city council of Left Field is concerned about protecting their baseball bat industry. They
Question:
Market Equilibrium
The city council of Left Field is concerned about protecting their baseball bat industry. They contracted with a local economics professor to develop some demand and supply information for baseball bats at various price points. This information is summarized in the table below.
Price | Quantity of Baseball Bats Demanded (per month) | Quantity of Baseball Bats Supplied (per month) |
$180 | 55 | 135 |
$170 | 70 | 110 |
$160 | 85 | 85 |
$150 | 100 | 60 |
$140 | 115 | 35 |
For items 1-6, match the given definition with the appropriate term by clicking in the "Answer" column and selecting a response from the list provided. Answer items may be used once, more than once, or not at all.
Definition | Answer | |
1 | The __________ for a good is the change in total costs associated with producing one more unit of output. | |
2 | The __________ is the maximum amount of a good or service sellers want to sell at a given price. | |
3 | __________ occurs at the intersection of the demand and supply curves. | |
4 | The __________ is the maximum amount of a good or service buyers want to buy at a given price. | |
5 | __________ lead(s) to market disequilibrium, rationing, and potential quality degradation. | |
6 | As you move down the demand curve, the __________ increases as the price decreases. |
For items 7-8 below, click in the "Answer" column and select the most appropriate answer choice.
Item | Answer | |
7 | A price ceiling is set at $150. | |
8 | A price floor is set at $170. |
Use the table provided above to answer the following questions. For questions 9-12, click in each cell in the "Answer" column and enter the appropriate amount. Enter all amounts as whole, positive values.
Question | Answer | |
9 | What is the equilibrium price of baseball bats? | |
10 | At what price will the most baseball bats be sold? | |
11 | Assume a price ceiling of $160. How many baseball bats will be sold? | |
12 | Assume a price floor of $170. How many baseball bats will be sold? |