The demand and supply schedules for chewing gum are:

Question

Price Quantity demanded Quantity supplied

(dollar per pack) (millions of packs a week) (millions of packs a week)

20 180 60

30 160 80

40 140 100

50 120 120

60 100 140

70 80 160

80 60 180

a)What are the equilibrium price and equilibrium quantity of chewing gum?

b)If chewing gum as 70 dollar a pack, deescribe the situation in the chewing gum market and explain what would happen to the price of chewing gum.

Answer 1

I can help you with this but the outline above is confusing to me because the numbers aren't lining up with the titles. Can you take a picture of the problem?