Assume that the demand for films is given by Q = 45 − 2P and the supply is given by Q = 15 + P. What are the equilibrium price and quantity of films? (a) P = 10 and Q = 25 (b) P = 12 and Q = 21 (c) P = 12 and Q = 15 (d) P = 25 and Q = 10 (e) None of the above
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8. Assume that the demand for films is given by Q = 45 − 2P and the supply is given by
Q = 15 + P. What are the
(a) P = 10 and Q = 25
(b) P = 12 and Q = 21
(c) P = 12 and Q = 15
(d) P = 25 and Q = 10
(e) None of the above
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- The following table shows the demand and supply of tickets of a football game which will be held at Shah Alam Stadium. Unit Price (RM) Market Demand (units) Market Supply (units) 20 5000 3500 40 4000 3500 60 3000 3500 80 2000 3500 100 1000 3500 a) On your foolscap paper, draw the demand and supply curves. Label all axes, all curves and the equilibrium point. (6m) b) How much is the equilibrium price and equilibrium quantity? (2m) c) At which price will there be a surplus of 2500 tickets? (1m) d) What will happen when the market price is RM40? Show your answer on the same diagram. (3m) e) Why is the supply of tickets fixed at 3500? (1m)Suppose the coffee market in the US is given by the following equations for supply and demand: Qs = 9+0.5p Qp = 12 – p where Q is the quantity in millions of tons per year and p is the price per pound. (a) Calculate the equilibrium price and quantity of coffee. (b) At the equilibrium price, what is the price elasticity of demand? (c) Suppose a tax of $0.75 is imposed on coffee producers. Calculate the new equilibrium price and quantity. What is the amount of the tax burden on consumers (hint: by how much has the price per pound consumers pay change?).(c) The demand for watches is given by p = 7000 -2q dollars, and the supply of watches is given by p where q is the number of watches demanded and supplied when the price per watch is p dollars. Based on the information provided, calculate the equilibrium quantity and the equilibrium price for watches. 0.01q? + 2q + 1000 dollars,
- 4. Currently the equilibrium price and quantity in the milk market are $4 per gallon and 100,000 gallons. The Price Elasticity of Demand is determined to be 0.80 while the Price Elasticity of Supply is determined to be 1.20. A price floor is set at 20% above the current equilibrium price. (a) Determine the dollar amount of the price floor. (b) Determine the Qs after the price is imposed. (c) Determine the Qd after the price is imposed.Q.1.10 Which of the following will result in a decrease in the equilibrium quantity of agood?(a) An increase in both demand and supply.(b) A decrease in both demand and supply.(c) An increase in demand together with a decrease in supply.(d) A decrease in demand together with an increase in supply.The diagram to the right illustrates a hypothetical demand curve representing the relationship between price (in dollars per unit) and quantity (in 1,000s of units per unit of time). The area of the triangle shown on the diagram is $ (Enter your response as an integer.) (D) Price (dollars per unit) 100- 90- 80- 70- 65 60- 50- 40- 30- 20- 10- 0- 39 :25 51 10 20 30 40 50 60 70 80 90 Quantity (1,000s of units per unit of time)
- Assume gadgets are sold in a competitive market, the equilibrium price is $6, and the equilibrium quantity is 500 units.(a) Using the numerical values above, draw a correctly labeled graph of the market for gadgets and show each of the following.(i) The equilibrium price(ii) The equilibrium quantity(b) At a price of $8 per unit, will there be a surplus or a shortage in the market? Explain.(c) Assume gadgets now become more popular. On your graph in part (a), show the effect of the increase in gadgets' popularity on the equilibrium price and quantity of gadgets.(d) Assume instead there is an increase in the price of tin, a major input in producing gadgets. What will be the effect of an increase in the price of tin on the market for gadgets?(e) If both changes in part (c) and part (d) occurred simultaneously, will the equilibrium quantity of gadgets increase, decrease, remain unchanged, or be indeterminate? Explain.Plot the supply curve from the supply schedule information provided. Price Quantity Supply (Qs) 1 0 2 3 3 4 4 5 5 6 (d) What else do you think will happen? (e) What happens if other determinants change?Question 1 The demand for stoves is given by QD=450−20P and the market supply is given by QS = 20 – 100P. i. In equilibrium, how many stoves would be sold and at what price? ii. What would happen if suppliers set the price of stoves at $15? Explain the market adjustment process. iii. Using the response in part (i), calculate the price elasticity of demand for stoves when price changes to $10.
- 1. The weekly demand (Qd) and supply (Qs) functions for a good X are given by:-Qd = 1000 – 5pQs = -400 + 15p, where P = Price per unit (R)(i) Draw the demand and supply curves on a graph and find the equilibrium priceand quantity (ii) If the demand function changes to 1200 – 5P, show the changes to part (i)above. (iii) Suppose a subsidy of R40 per unit is subsequently granted to producers ofgood X. Determine the new equilibrium price and quantity. (b) Use suitable examples to explain the likely effects of a price ceiling. (c) What do you understand by the ‘Substitution and Income effects’ of a change inprice of a good. (d) Elaborate on the factors influencing Price Elasticity of Demand (PED) and PriceElasticity of Supply (PES) of a good. 2. (a) Explain the concepts of Price Elasticity of Demand (PED), IncomeElasticity of Demand (YED) and Cross Elasticity of Demand (CED)(b) To what extent can PED be important to:-(i) a government, (ii) managers of hypermarkets ‘3. (a) Compare the…Plot the following hypothetical demand schedule of beef in the market. PARTICULARS PRICE OF BEEF (PER KILO) QUANTITY DEMANDED (IN KILOS) A P 150.00 90 B P 140.00 100 C P 100.00 130 D P 75.00 150 E P 60.00 170 F P 40.00 2001. Suppose the demand for and supply of one-bedroom housing units in Nairobi’s Westlands area can be represented by the following linear functions:Qd =18,200–40P and Qs =–2,200+20PWhere Qd, Qs = Number of housing units in thousands, P = Price in US dollars.a) Determine the market equilibrium price and quantity b) Suppose the government decides to subsidize the cost of construction one-bedroom houses in the area at US$20.00 per housing unit. Determine the equilibrium outcome after the subsidy, and show how the benefit is shared between tenants and landlords. How much will the subsidy costthe government?c) Graphically show your results using well labeled demand and supply curves