a. The market equilibrium price is $6.
b. Quantity supplied would be 10, but quantity demanded would be 20. This would result in a shortage equal to the area under the equilibrium point bounded by the supply and demand curves to the $2 level.
c. Quantity supplied would be 20, but the quantity demanded would be 10. This would result in a surplus equal to the area above the equilibrium point bounded by the supply and demand curves to the $8 level.
d. If prices changed and people wanted to buy twice as much as before, the following chart shows the result and the new equilibrium price of $8.
e. If there is a change in technology which lowers the suppliers' costs, the equilibrium price will fall as the suppliers are willing to supply more units at each price on the curve. The exact equilibrium point will be determined by the magnitude of the savings to the suppliers. Of course, some suppliers may be willing to charge higher prices in the short-term to realize greater profits from the technological shift, but the price will fall in the long-term due to competitive pressure.
a. If the price of steak increases, the equilibrium price and quantity of hamburgers is likely to increase as well since consumers will be willing to spend more on a hamburger (although less than the price increase for steaks).
b. If the price of french fries increases, the quantity demanded for hamburgers will decrease because the total cost of the combination increases. However, the decrease in quantity demanded will be less than an increase in the price of hamburgers because not everyone requires the complementary good.
c. As the population ages, their demand for hamburgers decreases as they are able to afford both the time and money associated with traditional meals rather than fast food, and as individuals become more health conscious. This shifts the demand curve to the left and decreases the equilibrium price.
d. If the government r...