https://file.aiquickdraw.com/mathbot/file/1726406443406e8u79qsc.jpg

Let's analyze the data and answer the questions:

### Supply and Demand Table:

| Price ($) | Quantity Demanded | Quantity Supplied |
|----------|--------------------|-------------------|
| 10       | 100                | 20                |
| 15       | 80                 | 40                |
| 20       | 60                 | 60                |
| 25       | 40                 | 80                |
| 30       | 20                 | 100               |

### a. What is the equilibrium price and quantity?
The equilibrium occurs where the quantity demanded equals the quantity supplied. Looking at the table, we see that at **$20**, both quantity demanded and supplied are **60 units**.

**Market equilibrium price**: $20  
**Market equilibrium quantity**: 60 units

### b. What is the market price if there is a shortage of 40 units?
A shortage occurs when the quantity demanded exceeds the quantity supplied. To have a shortage of 40 units, we need to find a point where the demand exceeds supply by 40 units:

- At **$15**, quantity demanded is 80, and quantity supplied is 40, which gives a shortage of **80 - 40 = 40 units**.

So, the market price is **$15**.

### c. At a price of $25, the market experiences a (surplus/shortage) of ____ units.
At a price of $25:
- Quantity demanded is 40 units.
- Quantity supplied is 80 units.

The market experiences a **surplus** of **80 - 40 = 40 units**.

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Would you like further details on this or have any questions? Here are 5 related questions to expand your understanding:

1. What factors can shift the demand curve, affecting the equilibrium price?
2. How does a government-imposed price ceiling impact a market in equilibrium?
3. What happens to the equilibrium price if there is an increase in supply but demand remains unchanged?
4. Can there be multiple equilibrium prices in a market under certain conditions?
5. How do external factors like taxes or subsidies affect the supply and demand balance?

**Tip**: Always compare both the quantity demanded and supplied at different prices to determine whether there is a surplus or shortage!

Use the supply and demand schedules below to answer the following questions:
1. What is the equilibrium price and quantity?
2. What is the market price if there is a shortage of 40 units?
3. At a price of $25, does the market experience a surplus or shortage, and by how many units?

Analyze a supply and demand schedule to determine the equilibrium price and quantity, identify the market price when there is a shortage of 40 units, and assess the surplus at a price of $25. Suitable for undergraduate economics students.

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