Suppose firms in the economy were to produce fewer goods and services. How do you think this would affect household spending on goods and services? ( Hint: Use the circular flow model to analyze this...

Suppose firms in the economy were to produce fewer goods and services. How do you think this would affect household spending on goods and services? (Hint:Use the circular flow model to analyze this question.)

1. At a price of $1.50 per dozen, how many bagels are demanded per month?

2. At a price of $1.50 per dozen, how many bagels are supplied per month?

3. At a price of $3.00 per dozen, how many bagels are demanded per month?

4. At a price of $3.00 per dozen, how many bagels are supplied per month?

5. What is the equilibrium price of bagels? What is the equilibrium quantity per month?