This is a short exercise designed to get students comfortable with graphing supply and demand curves as well as to understand the concept of equilibrium price and quantity.
By the end of this activity students will be able to:
Graph a supply and demand curve given a supply and demand schedule
Identify the equilibrium price and quantity in a market
Identify whether a given price results in a surplus or shortage of a good
Identify whether a given price will exert upward or downward pressure on the price of a good
Explain why there is only one stable price and quantity combination in a market