Student Learning Objective: HS.E3.1 Explain how buyers and sellers interact to create
markets and market structures.
Market: Apples
$10
$9
$8
$7
$2
Price
$6
$5
$4
$3
$1
✓
Demand Supply
Quantity Quantity
10
15
20
25
30
35
40
50
55
45
50
45
40
35
30
25
20
5
15
10
MC
1. Use the information above to draw the graph and answer the following questions.
a.) Draw and label a supply and demand graph for apples.[5 pts.]
b. Label the demand curve D1 and the supply curve S1. (1pt)
c.
What is the equilibrium price for Apples? Label the spot on the graph where the
equilibrium price is found by circling it and labeling it with an E. (1 pt)
d.
If the equilibrium price decreases to $4 on the graph will it create a surplus or
shortage? How much of a surplus or shortage will exist at that price? (answer
here) (2 pts)
e. If the equilibrium price rises to $9 will it create a surplus or shortage? How mu
of a surplus or shortage will exist at that price? answer here. (2 pts)