The supply curve S(x) and the demand curve D(x) for choclates are V4x + 16 S(x) = ; D(x) = 8-x for 0 sxS8 4. X: Quantity in units, S and D price per unit Sketch the graphs of the two functions in the given grid below and mark both axes and the two functions correctly. b) Calculate the coordinates of the market equilibrium point and mark it in the graph. What is the revenue of the producer in the equilibrium? c) d) Assume that the producers decide to sell the product for a price of 2 per unit without changing the supply curve. What is the corresponding demand and supply for this price? e) Mark the gap between supply and demand for price 1.2 per unit in the graph? Explain what the producers have to do.
The supply curve S(x) and the demand curve D(x) for choclates are V4x + 16 S(x) = ; D(x) = 8-x for 0 sxS8 4. X: Quantity in units, S and D price per unit Sketch the graphs of the two functions in the given grid below and mark both axes and the two functions correctly. b) Calculate the coordinates of the market equilibrium point and mark it in the graph. What is the revenue of the producer in the equilibrium? c) d) Assume that the producers decide to sell the product for a price of 2 per unit without changing the supply curve. What is the corresponding demand and supply for this price? e) Mark the gap between supply and demand for price 1.2 per unit in the graph? Explain what the producers have to do.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The supply curve S(x) and the demand curve D(x) for choclates are given by:
V4x + 16
S(x)
; D(x) = 8-x for 0sx S8
%3D
4
X: Quantity in units, S and D price per unit
Sketch the graphs of the two functions in the given grid below and mark both axes and the two
a)
functions correctly.
Calculate the coordinates of the market equilibrium point and mark it in the graph.
b)
What is the revenue of the producer in the equilibrium?
c)
Assume that the producers decide to sell the product for a price of 2 per unit without changing
the supply curve. What is the corresponding demand and supply for this price?
Mark the gap between supply and demand for price 1.2 per unit in the graph? Explain what
the producers have to do.
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