The following data represent 5 points on the supply curve for orange juice:

PRICE QUANTITY

($ PER GALLON) (MILLIONS OF GALLONS)

1 ................ 100

2 ................ 300

3 ................ 500

4 ................ 700

5 ................ 900

and these data represent 5 points on the demand curve for orange juice:

PRICE QUANTITY

($ PER GALLON) (MILLIONS OF GALLONS)

1 ................ 700

2 ................ 600

3 ................ 500

4 ................ 400

5 ................ 300

a. Graph the points of these supply and demand curves for orange juice. Be sure to put price on the vertical axis and quantity on the horizontal axis.

b. Do these points seem to lie along two straight lines? If so, figure out the precise algebraic equation of these lines.

c. Use your solutions from part b to calculate the ‘‘excess demand’’ for orange juice if the market price is zero.

d. Use your solutions from part b to calculate the ‘‘excess supply’’ of orange juice if the orange juice price is $6 per gallon.