Price quantity demanded quantity supplied
$20 100 40
$30 80 60
$40 70 70 $50 40 85

(1) look at the quantity supplied at each price level. compare this quantity with the quantity demanded, at each price level. find the equilibrium price and write it down on a piece of paper.

(2) in one or two sentences, define an equilibrium price and explain how you found the equilibrium price from the table above.

(3) look at the price level(s) that are less than the equilibrium price. at these prices, which is greater: the quantity supplied or the quantity demanded? is there excess supply or excess demand? write down your answers to both questions.

(4) next, look at the price level(s) that are greater than the equilibrium price. at these prices, which is greater: the quantity supplied or the quantity demanded? is there excess supply or excess demand? write down your answers to both questions.