The following figure shows the supply and demand for strawberries. Answer the questions that follow.
Supply and Demand of Strawberries

a. Indicate the equilibrium price and equilibrium quantity.
b. Suppose sellers try to sell strawberries at $4 a pound. How much of a shortage or a surplus of strawberries would result?
c. Now suppose that the demand for strawberries falls by 10,000 pounds at every price. Draw the new demand curve in the figure, and estimate what the new equilibrium price and equilibrium quantity would be.
d. If sellers still try to sell strawberries at $4 a pound, would the shortage or the surplus increase or decrease?

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10 20 30 40 50 Quantity (thousands)