Part I: Demand and Supply Curves

Table 4.1 represents supply and demand for a piece of medical equipment.

1. On the same graph, show the demand curve and supply curve for this piece of medical equipment.
2. Identify where the market equilibrium is on the graph.
3. State the Peand Qefor this piece of medical equipment.

Part II: Changing Peand Qe

For this part of the assignment, you do not use the numbers provided for Part I.

For each of the following situations, make a graph of equilibrium in a market. Then, graphically show how each curve will shift. Indicate the direction in which each shift will occur. Finally, show how the Peand Qeare affected by each situation.

1. A good is a normal good and income increases.
2. Consumers expect the price of a good to be lower in the future.
3. There is a decrease in resource prices.
4. There is a decrease in the number of existing suppliers.