Please answer the following questions:

1. Suppose we have the following market supply and demand schedules for bicycles:

Price       Quantity Demanded    Quantity Supplied

$100            70                             30

$200            60                             40

$300            50                             50

$400            40                             60

$500            30                             70

$600            20                             80

a. Plot the supply curve and the demand curve for bicycles. (Note please don't worry about turning in the curve electronically, just plot it on paper. Doing so will help with the remaining questions.)

b. What is the equilibrium price of bicycles?

c. What is the equilibrium quantity of bicycles?

d. If the price of bicycles were $100, is there a surplus or a shortage? How many units of surplus or shortage are there? Will this cause the price to rise or fall?

e. If the price of bicycles were $400, is there a surplus or a shortage? How many units of surplus or shortage are there? Will this cause the price to rise or fall?

2. Please share 2 or 3 experiences in your life when you either benefited from the oversupply (think sales and discounts) of a product or when you had to pay more for a product because it was in high demand. Please make your comments about 150 words