Q MARKET EQUILIBRIUM & POLICY IN-CLASS WORKSHEET 1 This question examines the market for coffee. You will use the formulas for a demand and supply curve to identify the quantity of coffee demanded and the quantity of coffee supplied at different prices. Below, you have the formulas for the demand curve and the supply curve for pounds of coffee. If you plug any price into the formula for the demand function, you get the quantity demanded at that price. If you plug any price into the supply function, you get the quantity supplied at that price. The Demand Function for coffee: Q = 12 ? P The Supply Function for coffee: Q = 2P Task 1: Use the table below to find the quantity demanded and the quantity supplied of pounds of coffee at each price. Price (per pound of coffee) Quantity of Coffee Demanded (pounds) Quantity of Coffee Supplied (pounds) $ 2 4 4 8 6 12 8 10 2 Task 2: Identify the equilibrium price of a pound of coffee. Task 3: At a price of $2, is there a shortage or surplus of coffee? How many pounds? Task 4: At a price of $10, is there a shortage or surplus of coffee? How many pounds? MARKET EQUILIBRIUM & POLICY IN-CLASS WORKSHEET 3 This question examines the market for smartphones. You will use the quantity demanded and the quantity supplied at different prices to identify the equilibrium price and to examine what happens when the market price does not equal the market price. Below, you are provided with the quantity of smartphones demanded and supplied. This data is obtained from points on the demand and supply curves in the market for smartphones. Price (per smartphone) Quantity of Smartphones Demanded Quantity of Smartphones Supplied $150 1,100 200 200 1,000 400 250 900 600 300 800 800 350 700 1,000 Task 1: When the price of a smartphone is $200, what is the quantity of smartphones demanded, and what is the quantity supplied? Should you expect the price of smartphones to rise or fall? Task 2: When the price of a smartphone is $350, what is the quantity of smartphones demanded, and what is the quantity supplied? Should you expect the price of smartphones to rise or fall? Task 3: What is the equilibrium price of a smartphone? At this price, what is the quantity of smartphones demanded, and what is the quantity supplied? Watch the YouTube video, link below. Using a demand/supply diagram, explain how increased avocado prices have resulted from: https://www.youtube.com/watch?v=05oMsK0-jjA&t=374s 1. Popularity of avocadoes as a super food. 2. Supply restrictions from depleted ground water in major avocado growing regions of the world.