# Step-by-Step Solution: Stock Market Demand and Supply Table Let's decipher and answer the problem step by step. ## 1. Interpreting the Table You provided a table with these columns: | Price | Mary | John | Tom | James | Beverly | Demand | Supply | |-------|------|------|-----|-------|---------|--------|--------| | 1 | 6 | 5 | 3 | 8 | -3 | 22 | -3 | - **Mary, John, Tom, James, Beverly:** Number of shares each trader wants to buy (+) or sell (−). - **Demand:** Total number of shares buyers want at the listed price. - **Supply:** Total number of shares sellers want to offer at the listed price. ## 2. Understanding the Numbers For **Price = 1**: - Mary: 6 (buy 6 shares) - John: 5 (buy 5 shares) - Tom: 3 (buy 3 shares) - James: 8 (buy 8 shares) - Beverly: -3 (sell 3 shares) **Demand**: \(6 + 5 + 3 + 8 = 22\) **Supply**: \(-3\) (since only Beverly is selling 3 shares) ## 3. Completing the Table (if needed) If the table is partial, usually you'd be asked to fill it out for other prices, but only Price 1 is given. **Explanation:** - At Price = 1, almost all traders want to buy, except Beverly, who wants to sell. - Demand is the sum of positive numbers (buy orders). - Supply is the sum of negative numbers (sell orders). ## 4. How the Market Works - If **Demand > Supply**, buyers want more shares than sellers are offering. The price tends to go up. - If **Supply > Demand**, more sellers than buyers. The price tends to go down. - When **Demand = Supply**, the market clears (equilibrium). ## 5. Final Answer (for Price = 1) - **At Price 1:** - **Total Demand:** 22 shares - **Total Supply:** 3 shares (absolute value of -3) - **Net Excess Demand:** \(22 - 3 = 19\) shares **Conclusion:** At price 1, there is far more demand than supply, so the price will tend to rise until more sellers are willing to sell or fewer buyers are willing to buy. --- ## Summary Table (Price = 1) | Price | Total Demand | Total Supply | Excess Demand | |-------|--------------|--------------|--------------| | 1 | 22 | 3 | 19 | **Final Answer:** At price 1, the total demand is 22 shares, total supply is 3 shares, and there is an excess demand of 19 shares. This excess demand will push the price higher until a new equilibrium is reached. --- If you have more prices or rows, you would repeat this process for each one. If you need the table completed at more prices, please provide the additional data.