The following table presents the demand and supply of Orange in the market. By using these data, answer the following questions. Price (Rs) Demanded(Millions) Supplied(Millions) 2.00 1 100 30 2.20 2 90 40 2.40 3 80 50 2.60 4 70 60 2.80 5 60 70 3.00 6 50 80 a) Draw the demand and supply curves for the above market. If price of the commodity increases from 3 to 5 and elasticity is 2 each for demand and supply, calculate quantity demanded and supply of the commodity? Elaborate the term of elasticity with diagram. b) Calculate the Price Elasticity of Demand (PED) and supply (PES) for the data and draw diagrams for respective PED and PES in the market. c) If price is increased from 5 to 7, how quantity demanded and supply will react using simple linear programming model forecast and answer this question.
The following table presents the
2.00 1 100
30 2.20 2
90 40 2.40
3 80 50
2.60 4 70
60 2.80 5
60 70 3.00
6 50 80
a) Draw the demand and supply
b) Calculate the
c) If price is increased from 5 to 7, how quantity demanded and supply will react using simple linear programming model
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 4 images
