When drawing graphs, make sure to label all axes and curves

If you get decimals in your answers, round to two decimal places. Supply and Demand Schedules for a Carton of a Dozen Eggs

Price Quantity Supplied Quantity Demanded

$3.50 50,000 320,000

$4.50 100,000 280,000

$5.50 150,000 240,000

$6.50 200,000 200,000

$7.50 250,000 160,000

Complete parts a, b, c, d, e, f, g, h, i, and j.

1. Graph the supply and demand schedules in a supply curve and demand curve,

respectively, on one graph.

1. What are the equilibrium price and quantity?
2. How is allocative efficiency seen on this graph?
3. If the government determined that the price for the carton of eggs in the

marketplace should be set at $4.50, would this indicate that they were setting a

price ceiling or a price floor on the eggs, so as to have an impact on the market as

intended by a price control? Explain.

1. At the price of $4.50, how many cartons of eggs will be sold?
2. At the price of $7.50, does there exist a shortage or surplus of the carton of eggs in

the market?State the size of the shortage or surplus at the $7.50 price.

1. As you read about in the Egg Shortage article, the overall supply of eggs is

decreasing. Depict this decrease in supply on your graph from part a and label it as

ES.State what effect this supply shift has on the equilibrium price and equilibrium

quantity.

1. Based upon the Egg Shortage article, state two of the five determinants of supply

that are being exhibited as causes of the shift in supply.

1. Is what you showed in part g an example of a change in quantity demanded, a

change in demand, a change in quantity supplied, or a change in supply? (There

will be two answers.) Explain why it is these two things.

1. The purchase of eggs by households would be an example of which market within

the Circular Flow Model?