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QUESTION 5 Draw a supply and demand diagram for the market of flights to Hawaii and find the equilibrium price and quantity. If the price for hotels in Hawaii (complement of flights) increases, what are the effects in the FLIGHT market? O The equilibrium price stays the same and the equilibrium quantity increases. O The equilibrium price decreases and the equilibrium quantity increases. O The equilibrium price increases and the equilibrium quantity increases. O The equilibrium price decreases and the equilibrium quantity decreases. O The equilibrium price increases and the equilibrium quantity decreases. QUESTION 6 Table 4-2 PRICE QUANTITY DEMANDED QUANTITY SUPPLIED $10 10 60 $ 8 20 45 $ 6 30 30 $ 4 40 15 $ 2 50 Refer to Table 4-2. If the price were $8, a O surplus of 50 units would exist and price would tend to fall, O surplus of 10 units would exist and price would tend to fall. surplus of 25 units would exist and price would tend to fall. O shortage of 25 units would exist and price would tend to rise