The document contains a supply and demand chart showing equilibrium price and quantity. It then asks 3 questions about how price changes would affect quantity supplied, demanded and market surplus/shortage. Specifically, it asks what would happen at a price of $45/unit and $25/unit. It also asks the reader to show the effect of a 25% reduction in demand on the chart.

1. Price Demand Supply Supply Demand
....
Shift Shift
5 1100 5
1000 200 0
10
5
15 400
0
20 900 500
5
25 600
0
30 800 5
750 700 0 I
35
5
45 600 800
I
50 400 850 100 200 300 400 500 600 700 ~OO 900 1000
NtJMBER OF UNITS
2. An outside producer wants to sell similar products at $45/unit.
How many would consumers be willing to buy at this price? units
How many would sellers be willing to sell at this price? units
How many would remain unsold at this price (surplus)? units
3. A foreign consumer group offers to buy these products, but will only pay $25/unit.
How many might be available at this price? units
How many might these foreigners purchase at this price? units
How many orders will go unfilled at this price (shortage)? units
5. April 15th income tax surcharges take money out of consumers' pockets, creating a 25% decrease in demand at each price level. Complete the chart and plot
the new demand curve (01).