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Question: Suppose that in a recent market period, an industry-wide survey determined the following relationship between the price of CD and the quantity supplied and quantity demanded.

Price Per CD	Quantity of CDs Demanded per Month	Quantity of CDsSupplied per Month
$20	500	9,000
$18	1,000	6,000
$16	1,500	4,500
$14	2,000	3,500
$12	2,500	2,500
$10	3,000	1,500
$8	3,500	800
$6	4,000	100

Answer the following questions from the above table:

(a) What are the equilibrium price and quantity of CDs?

(b) If the industry price per CD is $16, will there be shortage or surplus of CDs? How much is the shortage or surplus?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92582838

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