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?

 

Answer rating: 100% (QA)

Definition Answer 1 Marginal cost 2 Quanti... View the full answer