Supply and Demand Analysis.
a) Illustrate the market for a good by drawing the industry's demand and supply curves. On the graph, identify the equilibrium price and the equilibrium quantity. Be sure to label all axes and curves.
b). If the market price is less than the equilibrium price, what is the relationship of quantity supplied to quantity demanded? What will happen to the price?
c) If the market price is greater than the equilibrium price, what will be created in the market, and what will happen to the price?
All the parts of the question neatly and elaborately solved. Graph included.