Question: The demand and supply schedules for gum are:
![524_Price.png](https://secure.tutorsglobe.com/CMSImages/524_Price.png)
a. Suppose that the price of gum is 70¢ a pack. Describe the situation in the gum market and explain how the price adjusts.
b. Suppose that the price of gum is 30¢ a pack. Describe the situation in the gum market and explain how the price adjusts.