Part 2: Practice- Use the graph which shows the market supply and demand for fedoras (the type of hat Indiana Price Jones wears) to answer the questions. $80 8. What is the equilibrium price and equilibrium quantity of Supply fedoras? $70 9. Assume the price of fedoras was $20. Would there be a $60 shortage or a surplus? How large would the surplus/shortage be? $50 10. Assume instead that the price of fedoras was $70. Would $40 there be a surplus or shortage? How large would the surplus or shortage be? $30 11. Assume fedora are made of leather and the price of $20 leather falls. Would demand or supply increase or decrease? What would happen to the equilibrium price $10 and quantity? Demand 12. Assume that it is discovered that fedoras attract 0 10 20 30 40 50 60 70 80 venomous snakes. Would demand or supply increase or Quantity decrease? What would happen to the equilibrium price and quantity? Part 3: Check Your Understanding- Answer the questions regarding the market for leather jackets. 13. Identify at least three specific factors that determine how much buyers are willing and able to pay for leather jackets. 14. Identify at least three specific factors that determine how much sellers are willing and able to charge for leather jackets