ECON 201
Practice Worksheet
9/24/21
Name:
1. The following data shows the monthly demand and supply of wild-caught fish
from the seafood market.
(i)
What is the equilibrium price per pound of wild-caught fish?
(ii)
What is the equilibrium quantity of wild-caught fish?
(iii)
At the price of $5.99 per pound, is there a shortage or a surplus of wildcaught fish, and what is the amount of the shortage or surplus?
(iv)
At the price of $11.99 per pound, is there a shortage or a surplus of
wild-caught fish, and what is the amount of the shortage or surplus?
2. The production costs of laptop computers have decreased, and consumers are now
demanding more laptops. What are the possible outcomes for the equilibrium
price and the equilibrium quantity of laptop computers? Draw graphs to illustrate
your answer.
3. Suppose that half of the existing airline companies shut down and more
consumers are opting for land transportation instead of air transportation. What
are the possible outcomes for the equilibrium price and the equilibrium quantity in
the market for airlines tickets? Draw graphs to illustrate your answer.
4. You are studying the market for a particular new smartphone. You notice that
several changes are happening in the market at the same time. The company that
makes the smartphones has just opened a production plant in Malaysia where the
cost of labor is lower than it is in the United States. The company has also
switched to using a more cost-effective material for the outer shell of the phone.
In addition, a new advertising campaign for the phone has gone viral, and now
everybody wants this phone. What do you expect will happen to the equilibrium
price and the equilibrium quantity? Explain your answer.