In the burger market, there are two person buyers and two person sellers. The demand for buyer A and buyer B is: Qa = 200-20P and Qb= 100-20P. The supply functions for seller C and seller D is: Qc=50+10P and Qd = 100 + 10P Based on the market demand and supply above, please answer all questions below: a) Calculate the functions of market demand (Qx) and market supply (Qy) refer to the information given. b) Show the quantity demanded for Qa,Qb,Qx and Qc,Qd,Qy for the price is RM4 and RM2 in the one table. c) Determine the price and quantity for burger equilibrium in the market.
Q1. In the burger market, there are two person buyers and two person sellers.
The demand for buyer A and buyer B is:
Qa = 200-20P and Qb= 100-20P.
The supply functions for seller C and seller D is:
Qc=50+10P and Qd = 100 + 10P
Based on the market demand and supply above, please answer all questions below:
a) Calculate the functions of market demand (Qx) and market supply (Qy) refer to the information given.
b) Show the quantity demanded for Qa,Qb,Qx and Qc,Qd,Qy for the
c) Determine the price and quantity for burger equilibrium in the market.
d) In the same of graph paper, you need to draw :
i) Draw a demand curve for buyer A and B
ii) Draw a supply curve for seller C and D
iii) Draw a market demand and supply of burger market
iv) Determine the price and quantity equilibrium of the market.
e) Calculate and interpret the
i. Normal formula of price elasticity of demand
ii. Arc (mid point) formula of price elasticity of demand
f) If the government want to implement the price control mechanism, explain the mechanism when the price set at RM3 and RM5 respectively.
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