If the price per unit of good A is P175 quantity purchased is valued at 5,250 units and quantity supplied equals 2,500 units. If price changes by P1, quantity demanded changes by 4 units for consumer demand and quantity supplied changes by 2 units.
If the price per unit of good A is P175 quantity purchased is valued at 5,250 units and quantity supplied equals 2,500 units. If price changes by P1, quantity demanded changes by 4 units for consumer demand and quantity supplied changes by 2 units.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
If the price per unit of good A is P175 quantity purchased is valued at 5,250 units and quantity supplied equals 2,500 units. If price changes by P1, quantity demanded changes by 4 units for consumer demand and quantity supplied changes by 2 units.
![PROBLEM
Consider the following: If the price per unit of good A is R175 quantity purchased is
valued at 5,250 units and quantity supplied equals 2,500 units. If price changes by
B1, quantity demanded changes by 4 units for consumer demand and quantity
supplied changes by 2 units.
Required (Show supporting calculations.):
1. Determine the demand and supply functions.
2. Determine the price and quantity at equilibrium, using algebraic solution.
3. Graph demand and supply curves on one set of axes and highlight the following:
price-intercepts of demand and supply curves, quantity-intercepts of demand
and supply curves, and the equilibrium point. (Make sure to LABEL your graph
accordingly.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5e61e97-6223-4651-9b06-8bf092dae115%2F2f2c8e9d-1d5c-4d89-af56-e24ce74e4613%2Fxg66oy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PROBLEM
Consider the following: If the price per unit of good A is R175 quantity purchased is
valued at 5,250 units and quantity supplied equals 2,500 units. If price changes by
B1, quantity demanded changes by 4 units for consumer demand and quantity
supplied changes by 2 units.
Required (Show supporting calculations.):
1. Determine the demand and supply functions.
2. Determine the price and quantity at equilibrium, using algebraic solution.
3. Graph demand and supply curves on one set of axes and highlight the following:
price-intercepts of demand and supply curves, quantity-intercepts of demand
and supply curves, and the equilibrium point. (Make sure to LABEL your graph
accordingly.)
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