The information below represents the demand and supply schedules for a product:
Demand Schedule Supply Schedule
Price Quantity Demanded Price Quantity Supplied
200 0 200 2100
160 300 160 1700
120 600 120 1300
80 900 80 900
40 1200 40 500
a. Using graph paper, plot the demand curve, with price on the vertical axis and quantity on the horizontal axis. Find the slope of the line you have drawn. (If you do not have access to graph paper, you can print graph paper from the following:
b. On the same graph, plot the supply curve.
c. If the price in this market were $160, explain why this would not be the market equilibrium price.
d. Find the equilibrium price and equilibrium quantity exchanged for this market.