1. The table below shows information on the demand and supply for Chicken, where the quantities of Chicken are measured in thousands. Price Qd Qs GHS 120 50 36 GHS 150 40 40 GHS 180 32 48 GHS 210 28 56 GHS 240 24 70 Table 1. Demand and Supply for Chicken a. What is the quantity demanded and the quantity supplied of Chicken at a price of GHS 210? b. At what price is the quantity supplied equal to 48,000 Chickens? c. Graph the demand and supply curve for Chickens. Determine the equilibrium price and quantity from the graph? d. If the price was GHS 120, what would the quantities demanded and supplied be? Would a shortage or surplus exist? If so, how large would the shortage or surplus be?
1. The table below shows information on the demand and supply for Chicken, where the quantities of Chicken are measured in thousands.
GHS 120 50 36
GHS 150 40 40
GHS 180 32 48
GHS 210 28 56
GHS 240 24 70
Table 1. Demand and Supply for Chicken
a. What is the quantity demanded and the quantity supplied of Chicken at a price of GHS 210?
b. At what price is the quantity supplied equal to 48,000 Chickens?
c. Graph the demand and supply curve for Chickens. Determine the
d. If the price was GHS 120, what would the quantities demanded and supplied be? Would a shortage or surplus exist? If so, how large would the shortage or surplus be?
2. An exclusive Yoghurt manufacturer sells 4,000 gallons per month at a price of GHS 40 each. When the price is reduced to GHS 30 sales increase to 6,000 gallons per month.
a. Calculate the price elasticity of demand for the Yoghurts over this price range.
b. Is demand elastic, unit elastic or inelastic?
c. Calculate the change in revenue due to the change in price.
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