Macroeconomics – Fall 2015 – Problem Set #1
Anh Le
Econ120
September 17, 2015
Short Answer
1) Figure 4.22 shows the market for
macaroni:
Figure 4.22
(a) What is the equilibrium price and quantity?
– The equilibrium price is the price at which the quantity of a product offered is equal to the
quantity of the product in demand.
– Equilibrium quantity is simultaneously equal to both the quantity demanded and quantity
supplied.
(b) At what price shown on the graph would there be a shortage for macaroni? What would be
the size of this shortage?
