There are 100 sellers in the market for widgets: 40 people are willing to sell a widget at £10 or more; 20 additional people are willing to sell a widget at £20 or more; 30 additional people are willing to sell a widget at £30 or more; and 10 additional people are willing to sell a widget at £50 or more. (a) For a range of prices from £0 to £70, draw the supply curve in a suitably labelled graph. (b) The government will buy any amount of widgets for £40 or less. Draw the demand curve. How many widgets are sold in equilibrium?
There are 100 sellers in the market for widgets: 40 people are willing to sell a widget at £10 or more; 20 additional people are willing to sell a widget at £20 or more; 30 additional people are willing to sell a widget at £30 or more; and 10 additional people are willing to sell a widget at £50 or more. (a) For a range of prices from £0 to £70, draw the supply curve in a suitably labelled graph. (b) The government will buy any amount of widgets for £40 or less. Draw the demand curve. How many widgets are sold in equilibrium?
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
Problem 3CQQ
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There are 100 sellers in the market for widgets: 40 people are willing to sell a widget at £10
or more; 20 additional people are willing to sell a widget at £20 or more; 30 additional people
are willing to sell a widget at £30 or more; and 10 additional people are willing to sell a
widget at £50 or more.
(a) For a range of prices from £0 to £70, draw the supply curve in a suitably
labelled graph.
(b) The government will buy any amount of widgets for £40 or less. Draw the
demand curve. How many widgets are sold in equilibrium?
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