Answer:
Without specific information about the supply and demand curves, we cannot provide an exact answer for the equilibrium price and quantity at $4 per unit. However, by following the steps outlined above, you can determine these values on a graph with accurate data.
Step-by-step explanation:
To determine whether there is a shortage or surplus at a price of $4 per unit on a price and quantity graph, we need to analyze the intersection of the supply and demand curves. The equilibrium price and quantity can also be identified from this analysis.
In a price and quantity graph, the supply curve represents the quantity of a good or service that producers are willing to supply at different prices, while the demand curve represents the quantity that consumers are willing to purchase at different prices. The point where these two curves intersect is known as the equilibrium point.
If the price is set at $4 per unit, we need to compare this price with the equilibrium price to determine whether there is a shortage or surplus. If $4 is above the equilibrium price, it indicates that there is a surplus in the market. Conversely, if $4 is below the equilibrium price, it suggests that there is a shortage.
To find the equilibrium price and quantity, we need more information about the specific supply and demand curves. Without this information, we cannot provide an exact answer. However, we can explain how to identify the equilibrium point on a graph.
The equilibrium price is located at the point where the supply and demand curves intersect. At this price, the quantity supplied equals the quantity demanded, resulting in a balanced market. The corresponding quantity at this point represents the equilibrium quantity.
To find the equilibrium price and quantity on a graph, follow these steps:
1. Plot the supply curve: Start by plotting the supply curve on the graph. The supply curve typically slopes upward from left to right, indicating that as prices increase, suppliers are willing to produce and sell more units.
2. Plot the demand curve: Next, plot the demand curve on the same graph. The demand curve usually slopes downward from left to right, indicating that as prices decrease, consumers are willing to purchase more units.
3. Identify the intersection: Locate the point where the supply and demand curves intersect. This point represents the equilibrium price and quantity.
4. Determine the equilibrium price: The vertical coordinate of the intersection point represents the equilibrium price. This is the price at which the quantity supplied equals the quantity demanded.
5. Determine the equilibrium quantity: The horizontal coordinate of the intersection point represents the equilibrium quantity. This is the quantity at which the quantity supplied equals the quantity demanded.