Period:_____Name:__________________________

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1.
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Equilibrium Problems!
Identify the equilibrium price and quantity:!
Oil Price per Gallon

Quantity Demanded (Qd)

Quantity Supplied (Qs)

4.20

300

1,100

3.80

500

900

2.40

700

700

2.00

900

500

2.

Identify the equilibrium price and quantity:!

3.

Does this graph represent a surplus or a shortage? Explain why.

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4.
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A)
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Draw and label A) a surplus graph, and B) a shortage graph:!

B)"

5. A forest fire in California destroys a large portion of the land owned by Tall Pines Lumber
Company. How will this event affect the supply of lumber in California?!

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6.
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With this change in supply, will there be a surplus or shortage of lumber?!

7. Explain in as much detail as you can how this surplus or shortage will affect the local
price of lumber: