Originally, the quantity demanded and the quantity supplied for the commodity Z are 50 units and 80 units respectively when the selling price is 20 pesos per unit; 95 units and 60 units respectively when the selling price is 15.00 pesos per unit. Solve the following: 1. Derive the original and new demand and supply equations given that due to the increase in the buyer's income, the demand for this commodity increased by 10 units. 2. Solve for the price that caused a surplus of 5 units. Solve for the price that caused a shortage of 12 units. 3. Prove that the price equilibrium and the change in demand is directly related by computing the change in price equilibrium. Also prove that the quantity equilibrium and the change in demand are also directly related by computing the change in quantity equilibrium.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Originally, the quantity demanded and the quantity supplied for the commodity Z are 50 units and 80 units
respectively when the selling price is 20 pesos per unit; 95 units and 60 units respectively when the selling price
is 15.00 pesos per unit. Solve the following:
1. Derive the original and new demand and supply equations given that due to the increase in the buyer's income,
the demand for this commodity increased by 10 units.
2. Solve for the price that caused a surplus of 5 units. Solve for the price that caused a shortage of 12 units.
3. Prove that the price equilibrium and the change in demand is directly related by computing the
change in price equilibrium. Also prove that the quantity equilibrium and the change in demand are also directly
related by computing the change in quantity equilibrium.
Transcribed Image Text:Originally, the quantity demanded and the quantity supplied for the commodity Z are 50 units and 80 units respectively when the selling price is 20 pesos per unit; 95 units and 60 units respectively when the selling price is 15.00 pesos per unit. Solve the following: 1. Derive the original and new demand and supply equations given that due to the increase in the buyer's income, the demand for this commodity increased by 10 units. 2. Solve for the price that caused a surplus of 5 units. Solve for the price that caused a shortage of 12 units. 3. Prove that the price equilibrium and the change in demand is directly related by computing the change in price equilibrium. Also prove that the quantity equilibrium and the change in demand are also directly related by computing the change in quantity equilibrium.
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