The following diagram describes the hypothetical demand and supply for canned tuna in Canada in 2019.

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?

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Price (dollars per can) 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity (millions of cans)