Question

When the price of a smartphone is $200, what is the quantity of smartphones demanded, and what is the quantity supplied? Should you expect the price of smartphones to rise or fall?

Answer 1

There is insufficient information to answer this question. But at a random price of $200, assuming this is above the equilibrium there will be an excess supply and so supply will exceed demand. The quantity demanded at this price can be obtained from the demand curve at that price and the quantity supplied is obtained from the supply curve at that price. If the price is above the equilibrium price then supply will exceed demand and so prices must decline until the surplus is eliminated. If the price is below the equilibrium price then prices must increase until the excess demand is eliminated.