Demand and Supply of Jelly-Filled Doughnuts

Below is the demand and supply schedules for jelly-filled doughnuts people are willing and able to buy/ producers are willing to sell at various prices.

As prices decrease, what happens to the quantity demanded?

As prices increase, what happens to the quantity demanded?

As prices decrease, what happens to the quantity supplied?

As prices increase, what happens to the quantity supplied?

At what price does quantity demanded equal quantity supplied?

The price where quantity demanded meets quantity supplied is called

If the price of a doughnut is $.50 will there be a shortage or surplus?

If the price of a doughnut is $.20 will there be a shortage or surplus?

Based on the following circumstances, will there be an increase in demand for jelly-filled doughnuts or a decrease in the demand for jelly-filled doughnuts?

The number of consumers increases.

Based on the following circumstances, will there be an increase in demand for jelly-filled doughnuts or a decrease in the demand for jelly-filled doughnuts?
The consumers’ income decreases

Demand and Supply for Jelly-Filled Doughnuts

As prices decrease, the quantity demanded increases. Consumers are more likely to purchase more at lower prices.
As prices increase, the quantity demanded decreases. Higher prices typically deter consumers from buying as many products.
As prices decrease, the quantity supplied also decreases. Producers are less inclined to sell products when price points are lower.
As prices increase, the quantity supplied increases. Higher prices encourage producers to supply more products to the market.
The equilibrium price is where quantity demanded equals quantity supplied, balancing consumer desire and producer willingness.

Surplus and Shortage Situations

If the price of a doughnut is $0.50, there will be a surplus, as the price exceeds the quantity consumers are willing to buy.
If the price of a doughnut is $0.20, there will be a shortage, as the lower price increases demand beyond what producers are willing to supply.

Changes in Demand

An increase in the number of consumers will lead to an increase in demand for jelly-filled doughnuts. More consumers typically mean more overall demand.
A decrease in consumers' income will result in a decrease in the demand for jelly-filled doughnuts, as consumers may have less discretionary income to spend on non-essential goods.

Analyze the demand and supply schedules of jelly-filled doughnuts to understand how prices affect the quantity demanded and supplied. Identify the trends in demand and supply as prices change. Test your knowledge of microeconomics concepts!