Question 4 · Mankiw, Taylor & Ashwin, Business Economics, ch. 4
Demand Qd = 1600 − 300P and supply Qs = −1400 + 700P. Drag the sliders to shift or rotate each curve and watch the equilibrium move. Hover the chart to read off quantities and the shortage or surplus at any price.
Textbook convention: Price on the vertical axis, Quantity on the horizontal — part (c) of the question. Toggle above to see how Excel first draws it.
Hypothetical prices £0–£5 with quantities computed from the functions, exactly as the spreadsheet formulas =$F$2+($G$2*A2) and =$F$3+($G$3*A2) produce them. The final column reads the market: excess demand below P*, excess supply above it.
| Price (£) | Quantity demanded | Quantity supplied | Qs − Qd | Market state |
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