Economics PROBLEM SET 2 Supply and Demand DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2 Price Qd Qs Qd + 200 (at each price) Qs + 200 (at each price) $50 200 800 $45 300 700 $40 400 600 $35 500 500 $30 600 400 $25 700 300 $20 800 200 Please complete demand/supply schedule 2 i.e if Qd and Qs from schedule 1 are increased by 200 units. Determine equilibrium Price & Quantity in Schedule 1. Determine equilibrium Price & Quantity in Schedule 2. Assume a price floor of $45 in Schedule 1; what is the result? Assume a price ceiling of $25 in Schedule 1; what is the result? In both cases what is the implication for resource allocation? Distinguish between a change in demand/supply and change in quantity demanded/supplied. In Schedule 2 state four (4) reasons that would shift the demand curve. What are five (5) reasons that would shift the supply curve?
Economics PROBLEM SET 2 Supply and Demand DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2 Price Qd Qs Qd + 200 (at each price) Qs + 200 (at each price) $50 200 800 $45 300 700 $40 400 600 $35 500 500 $30 600 400 $25 700 300 $20 800 200 Please complete demand/supply schedule 2 i.e if Qd and Qs from schedule 1 are increased by 200 units. Determine equilibrium Price & Quantity in Schedule 1. Determine equilibrium Price & Quantity in Schedule 2. Assume a price floor of $45 in Schedule 1; what is the result? Assume a price ceiling of $25 in Schedule 1; what is the result? In both cases what is the implication for resource allocation? Distinguish between a change in demand/supply and change in quantity demanded/supplied. In Schedule 2 state four (4) reasons that would shift the demand curve. What are five (5) reasons that would shift the supply curve?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Economics
PROBLEM SET 2
DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2
|
Price |
Qd |
Qs |
|
Qd + 200(at each price) |
Qs + 200(at each price) |
|
$50 |
200 |
800 |
|
|
|
|
$45 |
300 |
700 |
|
|
|
|
$40 |
400 |
600 |
|
|
|
|
$35 |
500 |
500 |
|
|
|
|
$30 |
600 |
400 |
|
|
|
|
$25 |
700 |
300 |
|
|
|
|
$20 |
800 |
200 |
|
|
|
- Please complete demand/supply schedule 2 i.e if Qd and Qs from schedule 1 are increased by 200 units.
- Determine
equilibrium Price & Quantity in Schedule 1.
- Determine equilibrium Price & Quantity in Schedule 2.
- Assume a
price floor of $45 in Schedule 1; what is the result?
Assume a
In both cases what is the implication for resource allocation?
- Distinguish between a change in demand/supply and change in quantity demanded/supplied.
- In Schedule 2 state four (4) reasons that would shift the demand curve.
- What are five (5) reasons that would shift the supply curve?
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