The demand and supply schedules for gum are in the table.

a. Draw a graph of the market for gum and mark in the equilibrium price and quantity.
b. Suppose that the price of gum is 70 cents a pack. Describe the situation in the gum market and explain how the price adjusts.
c. Suppose that the price of gum is 30 cents a pack. Describe the situation in the gum market and explain how the price adjusts.

Transcribed Image Text:

Qty Quantity demanded upplied Price (cents per pack) 20 40 60 80 100 (millions of packs a week) 180 140 100 60 20 60 100 140 180 220