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b.	If the equilibrium price for organic pears adjusts to $6.50/pound, will there be a shortage or a surplus?
c.	Illustrate the shortage or surplus on your graph.
d.	What would pear growers have to do to bring the market into equilibrium?


To answer these questions based on the graph and the situation presented:

### **b. If the equilibrium price for organic pears adjusts to $6.50/pound, will there be a shortage or a surplus?**

From the graph, the equilibrium point occurs where the supply and demand curves intersect. The original equilibrium price appears to be around **$4.50/pound** with a corresponding equilibrium quantity of about **55 pounds**.

If the price adjusts to **$6.50/pound**:

- The **supply curve** at $6.50 shows that sellers are willing to supply more (higher quantity, around **85 pounds**).
- The **demand curve** at $6.50 shows that buyers are willing to purchase less (lower quantity, around **35 pounds**).

Because **quantity supplied (85 pounds)** is greater than **quantity demanded (35 pounds)**, there will be a **surplus** of pears in the market.

### **c. Illustrate the shortage or surplus on your graph.**

To illustrate the surplus on your graph:
- Mark the price level at **$6.50/pound** on the vertical axis.
- At $6.50/pound, plot the corresponding quantity supplied (about 85 pounds) and quantity demanded (about 35 pounds) using the supply and demand curves.
- Indicate the difference between the quantity supplied and quantity demanded. This difference (85 - 35 = 50 pounds) represents the **surplus**.

### **d. What would pear growers have to do to bring the market into equilibrium?**

To bring the market back into equilibrium:
- **Reduce the price** of pears. By lowering the price closer to the original equilibrium price of **$4.50/pound**, the quantity demanded will increase, and the quantity supplied will decrease.
- This adjustment will reduce the surplus, bringing the market back to a state where the quantity demanded equals the quantity supplied (which occurs at the equilibrium price and quantity).

Would you like me to modify the graph to visually show this surplus and how lowering the price resolves it?

### Additional questions:
1. What causes a shift in the demand curve in this scenario?
2. How would the supply curve shift if production costs for organic pears decreased?
3. What would happen to the equilibrium price if a new substitute for organic pears entered the market?
4. What happens if the price falls below the equilibrium point instead of rising above it?
5. How would an increase in consumer income affect the demand for organic pears?

### Tip:
Understanding how price adjustments affect supply and demand can help predict market behavior during shortages and surpluses.

b. If the equilibrium price for organic pears adjusts to $6.50/pound, will there be a shortage or a surplus?
c. Illustrate the shortage or surplus on your graph.
d. What would pear growers have to do to bring the market into equilibrium?

Understand how a price adjustment to $6.50/pound creates a surplus in the organic pear market by using the supply and demand graph. Learn how pear growers can restore equilibrium by reducing prices. Key concepts include supply and demand curves, surplus, and market equilibrium.

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