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d) existing peanut butter-making technology.

Answer the following questions.
1 What determines the level of prices in a market?
2 Will demand curves have the same exact shape in all markets? If not, how
will they differ?
3 How can you locate the equilibrium point on a demand and supply graph?
4 What is the difference between the demand and the quantity demanded of a
product?
5 Name some factors that can cause a shift in the supply curve in markets for
goods and services.
6 If the price is above the equilibrium level, would you predict a surplus or a
shortage? If the price is below the equilibrium level, would you predict a surplus or a
shortage? Why?
7 What is the formula for calculating elasticity?

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