Question

#1: Draw a graph with hypothetical demand and supply curves. Label the axes, each curve, the equilibrium, the equilibrium price, P*, and the equilibrium quantity, Q*.

#2: If the market price is below P*, what will happen to inventories and what will buyers do to cause the price to rise?

#3: If the market price is above P*, what will happen to inventories and how will sellers react?

#4: Equilibrium means the quantity supplied equals the quantity demanded. What else does equilibrium mean?

How do I do this? Thanks so much!! :)

Answer 1

That's all it gives?

Answer 2

well it's a set of problems... should i post them all here to see if it helps? :/

Answer 3

sure

Answer 4

okay, lemme edit the question and type it up :D

Answer 5

Okay i added them all in the original post :D @jim_thompson5910 :)

Answer 6

not sure if that helps? :/

Answer 7

kinda sorta

Answer 8

but it seems like something is missing

Answer 9

aww :( that's all it says... that and the title is equilibrium: market equilibrium

does that help? :/

Answer 10

I guess you can make up pretty much anything you want

Answer 11

as long as it fits the right form

Answer 12

i think so :/

do you know how to do that?

Answer 13

well what does a basic demand curve look like?

Answer 14

draw it on there

Answer 15

umm like this? the "curve" is just a line right?

Answer 16

that is one possibility out of infinitely many

Answer 17

we could have something like this

Answer 18

or maybe this



as long as it slopes downward all throughout, then we have a demand curve of some kind