Answer Happy

The table below shows the supply and demand schedules for sales
of chocolate sundaes at the
newest ice cream dessert fast food franchise in Prince
George
PRICE
(dollars/sundae)
$2.00
$3.00
$4.00
$5.00
$6.00
QUANTITY DEMANDED
QUANTITY SUPPLIED
(sundaes/week)
3,000
2,500
2,000
1,500
1,000
1,000
1,500
2,000
2,500
3.000
Question 1 (2 marks); What is the market equilibrium? (show how
you determined this answer)
Question 2 (2 marks): If the price of sundaes is $3/sundae,
describe what forces are at play in
the sundae market. Explain how market equilibrium is
restored.
Question 3 (3 marks): A rise in population increases the
quantity demanded of sundaes by 1,000
sundaes oer week at EAch orice. Explain how the sundae market
adiusts to its new
equilibrium.
Question 4 (3 marks): a new ice cream machine technology
increases the quantity supplied of
sundaes by 750 sundaes/week at each price. At the same time, a
health podcast convinces
people sundaes are dangerous, and the quantity demanded of
sundaes decreases by 250
sundaes/week at each price. Explain how the sundae market
adjusts to its new equilibrium