The following diagram describes the hypothetical demand and supply for canned tuna in Canada in 2013.

a. Suppose the price of a can of tuna is $4.00. What is the quantity demanded? What is the quantity supplied? At this price, is there a shortage or a surplus? By what amount?
b. Suppose the price of a can of tuna is $1.50. What is the quantity demanded? What is the quantity supplied? At this price, is there a shortage or a surplus? By what amount?
c. What is the equilibrium price and quantity in this market?

Transcribed Image Text:

4.50 4.00-_ 3.50 3.00 2.50 0.50 0 1 23456 78 9 10 11 12 Quantity (illions of cans)