1. What is the market equilibrium?
2. If the price is $70 a pair, describe the situation in the market.
3. After situation in (2) explain how market gets back to equilibrium.
4. If a rise in income increases the demand for running shoes by 100 pairs a day at each price, explain how the market adjusts to its new equilibrium (calculate new demand schedule and drawing demand and supply curve showing changes in the market