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How are the calculations made for this problemThe table below shows the demand and supply schedules for mouse pads
Price Quantity Demanded Quantity Supplied
(dollars per pad) (mouse pads per week)
3.00 160 120
4.00 150 130
5.00 140 140
6.00 130 150
7.00 120 160
8.00 110 170
a. What is the market equilibrium?_______________
b. If the price of a mouse pad is $7.00, describe the situation in the market. Explain how market equilibrium is restored.
c. What is the market equilibrium if a fall in the price of a computer changes the quantity demanded of mouse pads by 20 a week at each
price.
d. Explain what happens to the market equilibrium in part a and how the market adjusts if new voice-recognition software changes the quantity demanded by 10 mouse pads a week at each price and at the same time the cost of producing a mouse pad falls and changes the quantity supplied by 30 a week at each price.
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