The following table shows the market demand and supply of bicycles in a small town for a regular season. Use the above Demand and Supply Schedule to: 1. (3 points) Plot a demand and supply graph for the market of bicycles. a. Label correctly the horizontal axis as the number of bicycles (in thousand units) and the vertical axis as the price. Label the demand curve and supply curve on your graph. b. Mark at which price the market is in equilibrium (on the graph and in the table). 2. (2 points) Fill in the table if there is a shortage or surplus at each price and how many units it is; is the market price going to rise or fall? 3. (3 points) Assuming gasoline price is rising while bicycle price stays the same, there is an increase in the demand for bicycles of 4 thousand units. It means that at every price, 4 thousand units will increase the demand. For example, the new quantity demanded at $140 will be 22 thousand units (18 K+4 K=22 K) and same increase for other prices. Add a column and list the new demand quantity at each price in the above table. Plot a new AD curve on the same graph you have drawn from (1). 4. (2 points) After the increase in demand (shifting of the demand curve), explain if there is a shortage or surplus at the original price; is the new equilibrium price increased or decreased? 5. (2 points) Name a factor that could cause the supply of bicycles to change--a shifting factor of the supply curve.