SEEKING EQUILIBRIUM: SUPPLY AND DEMAND, CONTINUED APPLICATION Mark It Up! Market Demand and Supply of Roasted Corn Key $3.00 Supply $2.50 Demand $2.00 Price per Ear of Corn $1.50 $1.00 $.50 0 25 50 75 100 125 150 175 200 225 250 275 300 Ears of Roasted Corn 4. Reread your notes on "The Interaction of Supply and Demand" and "Reaching the Equilibrium Price." Underline the definitions of equilibrium price, shortage, and surplus. 5. On the graph, circle the point of market equilibrium. Use a yellow highlighter to shade the area of the graph that shows a surplus. Use a blue highlighter to shade the area of the graph that shows a shortage. CHAPTER 6 oughton Mifflin Company 6. Identify the equilibrium price for an ear of roasted corn. Identify the amount of shortage when the price of an ear of corn is $1.50. Identify the amount of surplus when the price of an ear of corn is $2.50