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b. Finding the Equilibrium point
Plotted on the graph, as well as seen clearly in the table, the equilibrium is established for the price of $2.00. In fact, at this price, the supply equals the demand at 4 units.
c. The Law of Demand and the Law of Supply (Price Increase)
According to the Law of Demand, if all other things remain constant, an increase of price (from the equilibrium price of $2) to $6 would decrease the quantity of comic books demanded to 2. Similarly, also provided all other things remain constant, the Law of Supply dictates that the number of comic books supplied would rise to 8. This creates a situation of excess supply, or surplus, and would lead to an increased inventory size for the suppliers.
d. The Law of Demand and the Law of Supply (Price Decrease)...