1. The equilibrium price for the new product is $3.8
2. The approximate difference in quantity was 3000. As a result of this difference, Widgetbin needs to produce additional products of 3000 to meet the quantity demanded.
3. As a result of difference of 3100, Widgetbin needs to employ different means to advertise and sell the product to take care of the surplus.
How to determine equilibrium price for the new product
To determine equilibrium price for the new product, look at the point where the demand and the supply curves overlap on the graph.
By doing this, the curves over lap at around $3.8
Thus, the equilibrium price for the new product is $3,8
To determine the the approximate difference in quantity of the product in terms of the supply and demand at a price of $2.50, trace the price to the point it touches both the demand and supply curve and check for the equivalent quantities on the y-axis
At $2.50, the total quantity supplied was about 2500
At $2.5, the total quantity demanded was about 5500
The approximate difference in quantity of the product in terms of the supply and demand is
5500 - 2500 = 3000
As a result of this difference, Widgetbin needs to produce additional products of 3000 to meet the quantity demanded.
Similarly,
At $6.00, the total quantity supplied was about 5000
At $6.00, the total quantity demanded was about 1900
Approximate difference = 5000 - 1900 = 3100
As a result of this difference, Widgetbin needs to employ difference means to advertise and sell the product to take care of the surplus.