Use the following information to answer questions 2 through 7: The graph below shows the supply and demand curves for soda. 13+ 12 11 9 Demand 8 Price Floor 6. 5- 47 3 2 8 9 10 11 12 13 4 5 6. Quantity of soda 2. First consider a situation without any government interventions and no price controls. In that case, what is the equilibrium quantity? 3. What is the equilibrium price? 4. Now suppose that the government imposes a Price Floor equal to $8. As a result of this new policy, what is the quantity demanded? 5. What is the new quantity supplied? 6. As a result of this Price Floor, is there shortage or surplus, or is the price control non- binding? 7. What is the amount of the shortage or surplus? Price of soda

Use the following information to answer questions 2 through 7: The graph below shows the supply and demand curves for soda. 13+ 12 11 9 Demand 8 Price Floor 6. 5- 47 3 2 8 9 10 11 12 13 4 5 6. Quantity of soda 2. First consider a situation without any government interventions and no price controls. In that case, what is the equilibrium quantity? 3. What is the equilibrium price? 4. Now suppose that the government imposes a Price Floor equal to $8. As a result of this new policy, what is the quantity demanded? 5. What is the new quantity supplied? 6. As a result of this Price Floor, is there shortage or surplus, or is the price control non- binding? 7. What is the amount of the shortage or surplus? Price of soda

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

10
None
Demand Schedule Supply Schedule P Q P Q 10 30 10 80 9 35 9 74 8 40 8 68 7 45 7 62 6 50 6 56 5 55 5 50 4 60 4 44 3 65 3 38 2 70 2 32 1 75 1 26 1. Graph the demand and supply schedules (above). What are the (approximate) Price and Quantity in this market? 2. Assume that an increase in popularity of the product depicted above means that demand for the product increases by 10%. The means that at every price 10% more units are demanded. Create a column with this new information to the right of the old quantity demanded. 3. Graph this new information and determine the new equilibrium price and quantity. P 10…
26
A5
Q10.
12. Market equilibrlum and disequilibrlum The following graph shows the monthly demand and supply curves in the market for keyboards. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Keyboards 60 I Price (Dollars per keyboard) 54 18 Supply 48 Quantity Supplied (Keyboards) 420 Quantity Demanded 1,000 42 (Keyboards) 36 30 Demand 24 18 12 6. 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Keyboards) keyboards bought and sold per month. per keyboard, and the equilibrium quantity is The equilibrium price in this market isS PRICE (Dollars per keyboard)
1. From the following hypothetical data, plot the demand and supply curves and determine the equilibrium price and equilibrium quantity. also, identify whether surplus or shortage is derived. Price (a per ballpen) Quantity Demanded Quantity Supplied 5 10 15 20 25 60 50 40 30 20 20 30 40 50 60 2. Compute the equilibrium price and equilibrium quantity of the following demand and supply functions. Qd = 150 - 2p Qd = 200 + 2p
3. The demand and supply curves of pens in the city of Nairobi are represented by the following function:- Required: Quantity demanded Qd=20-4p Quantity supplied Qs = -10 + 6p Where p is the price per pen. Calculate the equilibrium price and quantity. Examine the effect of a price ceiling set by the authorities at ii. Shs.2.00/= per pen.
12. Market equilibrium and disequilibrium The following graph shows the monthly demand and supply curves in the market for calendars. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool 100 Market for Calendars 90 Price (Dollars per calendar 30 Supply Quantity Demanded (Calendars) Quantity Supplied Calendars) 500 80 50 40 Demand 100 150 200 250 300 350 400 450 800 OIANTITY Calendars 803 PM arch. PRICE (Dollars per calendar)
Please use the following supply and demand schedules to answer the questions below: Price Quantity Demanded Quantity Supplied $0 4 0 $10 3 1 $20 2 2 $30 1 3 $40 0 4 a. At what prices will we see a shortage? b. At what prices will we see a surplus? c. What is the equilibrium price and quantity for this market?
Question The market for disposal digital cameras has the following demand and supply schedules: Price Quantity Demanded Quantity Supplied $ 5 10 15 20 25 30 35 15 13 11 9 7 5 3 0 3 6 9 12 15 18 a. Graph the demand and supply curves. What are the equilibrium price and quantity in this market? b. Explain what would happen if the market price is set at $30, and show this on the graph. c. Explain what would happen if the market price is set at $15, and show this on the graph.