Unit 3- Market Equilibrium

For this exercise we were required to answer the self-test question on page 45 in our text books. The data that we were required to plot is as follows:

P          D     S
$2.00   60   30
2.50     56   36
3.00     52   42
3.50     48   48
4.00     44   54

Equilibrium price is $3.50 and equilibrium demand and supply are equal to 48 (in hundreds of thousands per day). When the price increase over $3.50 than there will be a surplus in eggs ($4= demand of 44 but a supply of 54) but when the price decreases there is a shortage in eggs ($2= demand of 60 but a supply of only 30).

I have included a graph below to illustrate the results: