The following diagram describes the hypothetical demand and supply for canned tuna in Canada in 201 6.

a. Suppose the price of a can of tuna is \(\$ 4 .00\). What is the quantity demanded? What is the quantity supplied? At this price, is there a shortage or a surplus? By what amount?

b. Suppose the price of a can of tuna is \(\$ 1 .50\). What is the quantity demanded? What is the quantity supplied? At this price, is there a shortage or a surplus? By what amount?

c. What is the equilibrium price and quantity in this market?

Transcribed Image Text:

Price (dollars per can) 4.50 S 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 01 12 3 4 5 6 7 8 9 10 11 12 Quantity (millions of cans) D