Given the supply and demand curves on the right, when the price of the good is $20, we say that the market is in competitive equilibrium . At this price, we know that the quantity supplied is equal to the quantity demanded. Part 2 Using the graph on the right, illustrate the impact of an increase in the price of the good from $20 per unit to $30 per unit, assuming everything else in the economy remains the same. Part 3 1.) Using the point drawing tool, place a point at the quantity supplied when the price is $30 per unit. Label this point 'A'. 2.) Using the point drawing tool, place a point at the quantity demanded when the price is $30 per unit. Label this point 'B'. Part 4 Carefully follow the instructions above and only draw the required objects. Part 5 If the only change in the market was that the price increased to $30, then we know that the quantity supplied will be less than the quantity demanded, resulting in , which is also known as a shortage a surplus equity