Question

Supply-and-Demand Schedule for Cell Phones Price of Cell Phones Quantity Supplied of Cell Phones Quantity Demanded of Cell Phones $25 0 500 $50 200 450 $100 300 300 $150 400 250 $200 500 0 In the supply-and-demand schedule shown above, at the prices of _____ and _____, there is excess supply because quantity supplied is greater than quantity demanded. $25, $50 $25, $200 $150, $200

Answer 1

Answer:

$150, $200

Explanation:

A schedule that shows relationship between quantity supplied and quantity demanded is used to estimate the equilibrium quantity and price where there is a balance between the buyer's willingness to buy and the seller's willingness to sell.

Below this equilibrium point there is excess of quantity demanded over limited supply.

Above equilibrium there is excess supply and less demand.

According to the given schedule the equilibrium price is $100 where demand and supply are both 300 units.

The prices at which there are excess supply is given below

At $150 400 units is supplied against 250 units demanded

At $200 500 units are supplied against 0 units demanded