In the first part of this project, you chose a product and gathered information that describes the demand for this product. In part two of the project, you will use information on the supply of this product (given by your teacher) to determine your product's equilibrium price. Part Two: Your teacher will return your "Finding Equilibrium Price" table, with the "Quantity Supplied" column filled in. 1) Look at the quantity supplied of your good or service, at each price level. Compare this quantity with the quantity demanded, at each price level. Find the equilibrium price and write it down on a piece of paper. Note: Your equilibrium price is based on your data. Even if two people choose the same good or service, the equilibrium prices may be different. 2) In one or two sentences, define an equilibrium price and explain how you found the equilibrium price for your good or service. 3) Look at the price level(s) that are less than the equilibrium price. At these prices, which is greater: the quantity supplied or the quantity demanded? Is there excess supply or excess demand? Write down your answers to both questions. 4) Next, look at the price level(s) that are greater than the equilibrium price. At these prices, which is greater: the quantity supplied or the quantity demanded? Is there excess supply or excess demand? Write down your answers to both questions. 5) After you complete steps one through four, hand in Part Two of your project.
