5- Use the table below to answer the following questions.

Table 4

The Market for Car-Seat Heaters

Price Quantity Demanded Quantity Supplied

( dollars per heater) (heatersper month) (heaters per month)

40 500 300

50 450 350

60 400 400

70 350 450

80 300 500

90 250 550

100 200 600

a) Refer to Table 4 The equilibrium price is $_____60___ and the equilibrium quantity is _____400___ heaters per month.

b) Refer to Table 5 If the price is set at $80, there will be a demand quantity will be 300 units while the supply will be 500.

c) Refer to Table 5 Suppose the cost of production rises and supply decreases by 100 units at each price. The new equilibrium price is $________ and equilibrium quantity is ________ units.

d) Refer to Table 5 Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.

e) Refer to Table 5 Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. Simultaneously, the cost of production rises and supply decreases by 100 heaters at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.