(a) Assume the following information for demand and supply curve for good Z Demand Demand Supply Supply Price Quantity demanded Price Quantity supplied $ 10 10 $ 1 10 $ 9 20 $ 2 15 $ 8 30 $ 3 20 $ 7 40 $ 4 25 $ 6 50 $ 5 30 $ 5 60 $ 6 35 $ 4 70 $ 7 40 $ 3 80 $ 8 45 $ 2 90 $ 9 50 $ 1 100 $ 10 55 Illustrate demand and supply curve.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 4, Problem 25P

To determine

(a)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Illustrate demand and supply curve.

Expert Solution

Answer to Problem 25P

Following graph represents the demand and supply curve of good Z

EXPLORING ECONOMICS, Chapter 4, Problem 25P

Explanation of Solution

The above graph represents the supply and demand curve of good Z. The intersecting point is the equilibrium point at which the demand for the products is equal to the supply of the products. The upward movement of the supply curve represents that with an increase in the price of the product the supplier will increase the supply whereas the downwards movement of the demand curve represents a decrease in demand of the product with an increase in the price of the product.

Economics Concept Introduction

Introduction:

Demand and supply curve represents relationship between the quantity of product a supplier supplies in the market and quantity of product consumers demands. The point where supply and demand curve meets is referred to as equilibrium price. This is the price at which supplier agrees to supply the commodities and consumers agrees to buy at that price point.

To determine

(b)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the equilibrium price and the quantity traded

Expert Solution

Answer to Problem 25P

In the given data the equilibrium price is $$7$ and the quantity traded is $40$ units

Explanation of Solution

In the given table, one can observe that at price $$7$ the amount of quantity supplied is equal to amount of quantity demanded that is $40$

Therefore, the equilibrium price is $$7$ and the quantity traded is $40$ units

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

The amount of quantity traded in between in the suppliers and consumers are the equilibrium quantity traded.

To determine

(c)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$9$

Expert Solution

Answer to Problem 25P

At price $$9$ there is surplus of good Z by $30$ units.

Explanation of Solution

In the given table at price, $$9$ quantity supplied is $50$ units and quantity demanded is $20$ units.

Since the quantity supplied is more than quantity demanded, therefore there is surplus at price $$9$ .

To calculate surplus

$Surplus= Qunatity Supplied−Qunatity Demanded=50−30=20$

Thus the surplus at price $$9$ is $20$ units

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market.

To determine

(d)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$3$

Expert Solution

Answer to Problem 25P

At price $$3$ , there is shortage of good Z by 60 units

Explanation of Solution

In the given table at price, $$3$ the quantity supplied is 20 units and quantity demanded in 80 units, since the demand is more than the supply. Therefore, shortage of good will occur at price

To calculate shortage

$Shortage=Quantity Demanded−Quantity Supplied=80−20=60$

Therefore ate price $$3$ shortage of good Z is 60 units.

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market

To determine

(e)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if demand for Z increased by $15$ at every price.

Expert Solution

Answer to Problem 25P

New equilibrium price of the good is $$8$ and the quantity traded is $45$ units.

Explanation of Solution

According to the given situation, the quantity demanded increases by $15$ units at every price point.

Therefore the new quantity demanded is represented in the table below

Demand	Demand	Demand	Supply	Supply
Price	Quantity demanded	New Quantity after addition of 15 Units	Price	Quantity supplied
$$10$	$10$	$10+15=25$	$$1$	$10$
$$9$	$20$	$20+15=35$	$$2$	$15$
$$8$	$30$	$30+15=45$	$$3$	$20$
$$7$	$40$	$40+15=55$	$$4$	$25$
$$6$	$50$	$50+15=65$	$$5$	$30$
$$5$	$60$	$60+15=75$	$$6$	$35$
$$4$	$70$	$70+15=85$	$$7$	$40$
$$3$	$80$	$80+15=95$	$$8$	$45$
$$2$	$90$	$90+15=105$	$$9$	$50$
$$1$	$100$	$100+15=115$	$$10$	$55$

After the addition of 15 units in quantity demanded column, one can observe the equilibrium price shifted at price $$8$ as the quantity supplied and demanded is equal and the quantity traded is $45$ units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

To determine

(f)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if the supply of Z is increased by $15$ units

Expert Solution

Answer to Problem 25P

When the supply is increased by 15 units the new equilibrium price will be $$6$ and the quantity traded is 60 units

Explanation of Solution

The new supply column when the supply of Z is increased by 15 units at each price point is shown as below

Demand	Demand	Supply	Supply
Price	Quantity demanded	Price	Quantity supplied	New quantity supplied with addition of 15 units
$$10$	$10$	$$1$	$10$	$10+15=25$
$$9$	$20$	$$2$	$15$	$15+15=30$
$$8$	$30$	$$3$	$20$	$20+15=35$
$$7$	$40$	$$4$	$25$	$25+15=40$
$$6$	$50$	$$5$	$30$	$30+15=45$
$$5$	$60$	$$6$	$35$	$35+15=50$
$$4$	$70$	$$7$	$40$	$40+15=55$
$$3$	$80$	$$8$	$45$	$45+15=60$
$$2$	$90$	$$9$	$50$	$50+15=65$
$$1$	$100$	$$10$	$55$	$55+15=70$

After the addition of 15 units in the supply column one can observe that the equilibrium is shifted at price $$6$ with equilibrium quantity traded as 60 units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

In this question, you will test relative purchasing parity (PPP) using the data. Use yearly data from FRED website from 1971 to 2020: (i) The Canadian Dollars to U.S. Dollar Spot Exchange Rate (ER) (ii) Consumer price index for Canada (CAN_CPI), and (iii) Consumer price index for the US (US_CPI). Inflation is measured by the consumer price index (CPI). The relative PPP equation is: AE CAN$/US$ ECAN$/US$ = π CAN - πUS Submit the Excel sheet that you worked on. 1. First, compute the percentage change in the exchange rate (left-hand side of the equation). Caculate the variable for each year from 1972 to 2020 in Column E (named Change_ER) of the Excel sheet. For example, for 1972, compute E3: (B3-B2)/B2). ER1972 ER1971 ER 1971 (in Excel, the formula in cell

not use ai please

8. The current price of 3M stock is $87 per share. The previous dividend paid was $5.96, and the next dividend is $6.25, assuming a growth rate of 4.86% per year. What is the forward (next 12 months) dividend yield? Show at least two decimal places, as in x.xx% %

Answer 2

Question

Chapter 4, Problem 25P

To determine

(a)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Illustrate demand and supply curve.

Expert Solution

Answer to Problem 25P

Following graph represents the demand and supply curve of good Z

EXPLORING ECONOMICS, Chapter 4, Problem 25P

Explanation of Solution

The above graph represents the supply and demand curve of good Z. The intersecting point is the equilibrium point at which the demand for the products is equal to the supply of the products. The upward movement of the supply curve represents that with an increase in the price of the product the supplier will increase the supply whereas the downwards movement of the demand curve represents a decrease in demand of the product with an increase in the price of the product.

Economics Concept Introduction

Introduction:

Demand and supply curve represents relationship between the quantity of product a supplier supplies in the market and quantity of product consumers demands. The point where supply and demand curve meets is referred to as equilibrium price. This is the price at which supplier agrees to supply the commodities and consumers agrees to buy at that price point.

To determine

(b)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the equilibrium price and the quantity traded

Expert Solution

Answer to Problem 25P

In the given data the equilibrium price is $$7$ and the quantity traded is $40$ units

Explanation of Solution

In the given table, one can observe that at price $$7$ the amount of quantity supplied is equal to amount of quantity demanded that is $40$

Therefore, the equilibrium price is $$7$ and the quantity traded is $40$ units

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

The amount of quantity traded in between in the suppliers and consumers are the equilibrium quantity traded.

To determine

(c)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$9$

Expert Solution

Answer to Problem 25P

At price $$9$ there is surplus of good Z by $30$ units.

Explanation of Solution

In the given table at price, $$9$ quantity supplied is $50$ units and quantity demanded is $20$ units.

Since the quantity supplied is more than quantity demanded, therefore there is surplus at price $$9$ .

To calculate surplus

$Surplus= Qunatity Supplied−Qunatity Demanded=50−30=20$

Thus the surplus at price $$9$ is $20$ units

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market.

To determine

(d)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$3$

Expert Solution

Answer to Problem 25P

At price $$3$ , there is shortage of good Z by 60 units

Explanation of Solution

In the given table at price, $$3$ the quantity supplied is 20 units and quantity demanded in 80 units, since the demand is more than the supply. Therefore, shortage of good will occur at price

To calculate shortage

$Shortage=Quantity Demanded−Quantity Supplied=80−20=60$

Therefore ate price $$3$ shortage of good Z is 60 units.

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market

To determine

(e)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if demand for Z increased by $15$ at every price.

Expert Solution

Answer to Problem 25P

New equilibrium price of the good is $$8$ and the quantity traded is $45$ units.

Explanation of Solution

According to the given situation, the quantity demanded increases by $15$ units at every price point.

Therefore the new quantity demanded is represented in the table below

Demand	Demand	Demand	Supply	Supply
Price	Quantity demanded	New Quantity after addition of 15 Units	Price	Quantity supplied
$$10$	$10$	$10+15=25$	$$1$	$10$
$$9$	$20$	$20+15=35$	$$2$	$15$
$$8$	$30$	$30+15=45$	$$3$	$20$
$$7$	$40$	$40+15=55$	$$4$	$25$
$$6$	$50$	$50+15=65$	$$5$	$30$
$$5$	$60$	$60+15=75$	$$6$	$35$
$$4$	$70$	$70+15=85$	$$7$	$40$
$$3$	$80$	$80+15=95$	$$8$	$45$
$$2$	$90$	$90+15=105$	$$9$	$50$
$$1$	$100$	$100+15=115$	$$10$	$55$

After the addition of 15 units in quantity demanded column, one can observe the equilibrium price shifted at price $$8$ as the quantity supplied and demanded is equal and the quantity traded is $45$ units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

To determine

(f)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if the supply of Z is increased by $15$ units

Expert Solution

Answer to Problem 25P

When the supply is increased by 15 units the new equilibrium price will be $$6$ and the quantity traded is 60 units

Explanation of Solution

The new supply column when the supply of Z is increased by 15 units at each price point is shown as below

Demand	Demand	Supply	Supply
Price	Quantity demanded	Price	Quantity supplied	New quantity supplied with addition of 15 units
$$10$	$10$	$$1$	$10$	$10+15=25$
$$9$	$20$	$$2$	$15$	$15+15=30$
$$8$	$30$	$$3$	$20$	$20+15=35$
$$7$	$40$	$$4$	$25$	$25+15=40$
$$6$	$50$	$$5$	$30$	$30+15=45$
$$5$	$60$	$$6$	$35$	$35+15=50$
$$4$	$70$	$$7$	$40$	$40+15=55$
$$3$	$80$	$$8$	$45$	$45+15=60$
$$2$	$90$	$$9$	$50$	$50+15=65$
$$1$	$100$	$$10$	$55$	$55+15=70$

After the addition of 15 units in the supply column one can observe that the equilibrium is shifted at price $$6$ with equilibrium quantity traded as 60 units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 4, Problem 25P

To determine

(a)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Illustrate demand and supply curve.

Expert Solution

Answer to Problem 25P

Following graph represents the demand and supply curve of good Z

EXPLORING ECONOMICS, Chapter 4, Problem 25P

Explanation of Solution

The above graph represents the supply and demand curve of good Z. The intersecting point is the equilibrium point at which the demand for the products is equal to the supply of the products. The upward movement of the supply curve represents that with an increase in the price of the product the supplier will increase the supply whereas the downwards movement of the demand curve represents a decrease in demand of the product with an increase in the price of the product.

Economics Concept Introduction

Introduction:

Demand and supply curve represents relationship between the quantity of product a supplier supplies in the market and quantity of product consumers demands. The point where supply and demand curve meets is referred to as equilibrium price. This is the price at which supplier agrees to supply the commodities and consumers agrees to buy at that price point.

To determine

(b)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the equilibrium price and the quantity traded

Expert Solution

Answer to Problem 25P

In the given data the equilibrium price is $$7$ and the quantity traded is $40$ units

Explanation of Solution

In the given table, one can observe that at price $$7$ the amount of quantity supplied is equal to amount of quantity demanded that is $40$

Therefore, the equilibrium price is $$7$ and the quantity traded is $40$ units

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

The amount of quantity traded in between in the suppliers and consumers are the equilibrium quantity traded.

To determine

(c)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$9$

Expert Solution

Answer to Problem 25P

At price $$9$ there is surplus of good Z by $30$ units.

Explanation of Solution

In the given table at price, $$9$ quantity supplied is $50$ units and quantity demanded is $20$ units.

Since the quantity supplied is more than quantity demanded, therefore there is surplus at price $$9$ .

To calculate surplus

$Surplus= Qunatity Supplied−Qunatity Demanded=50−30=20$

Thus the surplus at price $$9$ is $20$ units

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market.

To determine

(d)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$3$

Expert Solution

Answer to Problem 25P

At price $$3$ , there is shortage of good Z by 60 units

Explanation of Solution

In the given table at price, $$3$ the quantity supplied is 20 units and quantity demanded in 80 units, since the demand is more than the supply. Therefore, shortage of good will occur at price

To calculate shortage

$Shortage=Quantity Demanded−Quantity Supplied=80−20=60$

Therefore ate price $$3$ shortage of good Z is 60 units.

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market

To determine

(e)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if demand for Z increased by $15$ at every price.

Expert Solution

Answer to Problem 25P

New equilibrium price of the good is $$8$ and the quantity traded is $45$ units.

Explanation of Solution

According to the given situation, the quantity demanded increases by $15$ units at every price point.

Therefore the new quantity demanded is represented in the table below

Demand	Demand	Demand	Supply	Supply
Price	Quantity demanded	New Quantity after addition of 15 Units	Price	Quantity supplied
$$10$	$10$	$10+15=25$	$$1$	$10$
$$9$	$20$	$20+15=35$	$$2$	$15$
$$8$	$30$	$30+15=45$	$$3$	$20$
$$7$	$40$	$40+15=55$	$$4$	$25$
$$6$	$50$	$50+15=65$	$$5$	$30$
$$5$	$60$	$60+15=75$	$$6$	$35$
$$4$	$70$	$70+15=85$	$$7$	$40$
$$3$	$80$	$80+15=95$	$$8$	$45$
$$2$	$90$	$90+15=105$	$$9$	$50$
$$1$	$100$	$100+15=115$	$$10$	$55$

After the addition of 15 units in quantity demanded column, one can observe the equilibrium price shifted at price $$8$ as the quantity supplied and demanded is equal and the quantity traded is $45$ units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

To determine

(f)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if the supply of Z is increased by $15$ units

Expert Solution

Answer to Problem 25P

When the supply is increased by 15 units the new equilibrium price will be $$6$ and the quantity traded is 60 units

Explanation of Solution

The new supply column when the supply of Z is increased by 15 units at each price point is shown as below

Demand	Demand	Supply	Supply
Price	Quantity demanded	Price	Quantity supplied	New quantity supplied with addition of 15 units
$$10$	$10$	$$1$	$10$	$10+15=25$
$$9$	$20$	$$2$	$15$	$15+15=30$
$$8$	$30$	$$3$	$20$	$20+15=35$
$$7$	$40$	$$4$	$25$	$25+15=40$
$$6$	$50$	$$5$	$30$	$30+15=45$
$$5$	$60$	$$6$	$35$	$35+15=50$
$$4$	$70$	$$7$	$40$	$40+15=55$
$$3$	$80$	$$8$	$45$	$45+15=60$
$$2$	$90$	$$9$	$50$	$50+15=65$
$$1$	$100$	$$10$	$55$	$55+15=70$

After the addition of 15 units in the supply column one can observe that the equilibrium is shifted at price $$6$ with equilibrium quantity traded as 60 units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 4, Problem 25P

To determine

(a)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Illustrate demand and supply curve.

Expert Solution

Answer to Problem 25P

Following graph represents the demand and supply curve of good Z

EXPLORING ECONOMICS, Chapter 4, Problem 25P

Explanation of Solution

The above graph represents the supply and demand curve of good Z. The intersecting point is the equilibrium point at which the demand for the products is equal to the supply of the products. The upward movement of the supply curve represents that with an increase in the price of the product the supplier will increase the supply whereas the downwards movement of the demand curve represents a decrease in demand of the product with an increase in the price of the product.

Economics Concept Introduction

Introduction:

Demand and supply curve represents relationship between the quantity of product a supplier supplies in the market and quantity of product consumers demands. The point where supply and demand curve meets is referred to as equilibrium price. This is the price at which supplier agrees to supply the commodities and consumers agrees to buy at that price point.

To determine

(b)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the equilibrium price and the quantity traded

Expert Solution

Answer to Problem 25P

In the given data the equilibrium price is $$7$ and the quantity traded is $40$ units

Explanation of Solution

In the given table, one can observe that at price $$7$ the amount of quantity supplied is equal to amount of quantity demanded that is $40$

Therefore, the equilibrium price is $$7$ and the quantity traded is $40$ units

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

The amount of quantity traded in between in the suppliers and consumers are the equilibrium quantity traded.

To determine

(c)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$9$

Expert Solution

Answer to Problem 25P

At price $$9$ there is surplus of good Z by $30$ units.

Explanation of Solution

In the given table at price, $$9$ quantity supplied is $50$ units and quantity demanded is $20$ units.

Since the quantity supplied is more than quantity demanded, therefore there is surplus at price $$9$ .

To calculate surplus

$Surplus= Qunatity Supplied−Qunatity Demanded=50−30=20$

Thus the surplus at price $$9$ is $20$ units

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market.

To determine

(d)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$3$

Expert Solution

Answer to Problem 25P

At price $$3$ , there is shortage of good Z by 60 units

Explanation of Solution

In the given table at price, $$3$ the quantity supplied is 20 units and quantity demanded in 80 units, since the demand is more than the supply. Therefore, shortage of good will occur at price

To calculate shortage

$Shortage=Quantity Demanded−Quantity Supplied=80−20=60$

Therefore ate price $$3$ shortage of good Z is 60 units.

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market

To determine

(e)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if demand for Z increased by $15$ at every price.

Expert Solution

Answer to Problem 25P

New equilibrium price of the good is $$8$ and the quantity traded is $45$ units.

Explanation of Solution

According to the given situation, the quantity demanded increases by $15$ units at every price point.

Therefore the new quantity demanded is represented in the table below

Demand	Demand	Demand	Supply	Supply
Price	Quantity demanded	New Quantity after addition of 15 Units	Price	Quantity supplied
$$10$	$10$	$10+15=25$	$$1$	$10$
$$9$	$20$	$20+15=35$	$$2$	$15$
$$8$	$30$	$30+15=45$	$$3$	$20$
$$7$	$40$	$40+15=55$	$$4$	$25$
$$6$	$50$	$50+15=65$	$$5$	$30$
$$5$	$60$	$60+15=75$	$$6$	$35$
$$4$	$70$	$70+15=85$	$$7$	$40$
$$3$	$80$	$80+15=95$	$$8$	$45$
$$2$	$90$	$90+15=105$	$$9$	$50$
$$1$	$100$	$100+15=115$	$$10$	$55$

After the addition of 15 units in quantity demanded column, one can observe the equilibrium price shifted at price $$8$ as the quantity supplied and demanded is equal and the quantity traded is $45$ units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

To determine

(f)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if the supply of Z is increased by $15$ units

Expert Solution

Answer to Problem 25P

When the supply is increased by 15 units the new equilibrium price will be $$6$ and the quantity traded is 60 units

Explanation of Solution

The new supply column when the supply of Z is increased by 15 units at each price point is shown as below

Demand	Demand	Supply	Supply
Price	Quantity demanded	Price	Quantity supplied	New quantity supplied with addition of 15 units
$$10$	$10$	$$1$	$10$	$10+15=25$
$$9$	$20$	$$2$	$15$	$15+15=30$
$$8$	$30$	$$3$	$20$	$20+15=35$
$$7$	$40$	$$4$	$25$	$25+15=40$
$$6$	$50$	$$5$	$30$	$30+15=45$
$$5$	$60$	$$6$	$35$	$35+15=50$
$$4$	$70$	$$7$	$40$	$40+15=55$
$$3$	$80$	$$8$	$45$	$45+15=60$
$$2$	$90$	$$9$	$50$	$50+15=65$
$$1$	$100$	$$10$	$55$	$55+15=70$

After the addition of 15 units in the supply column one can observe that the equilibrium is shifted at price $$6$ with equilibrium quantity traded as 60 units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 4, Problem 25P

To determine

(a)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Illustrate demand and supply curve.

Expert Solution

Answer to Problem 25P

Following graph represents the demand and supply curve of good Z

EXPLORING ECONOMICS, Chapter 4, Problem 25P

Explanation of Solution

The above graph represents the supply and demand curve of good Z. The intersecting point is the equilibrium point at which the demand for the products is equal to the supply of the products. The upward movement of the supply curve represents that with an increase in the price of the product the supplier will increase the supply whereas the downwards movement of the demand curve represents a decrease in demand of the product with an increase in the price of the product.

Economics Concept Introduction

Introduction:

Demand and supply curve represents relationship between the quantity of product a supplier supplies in the market and quantity of product consumers demands. The point where supply and demand curve meets is referred to as equilibrium price. This is the price at which supplier agrees to supply the commodities and consumers agrees to buy at that price point.

To determine

(b)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the equilibrium price and the quantity traded

Expert Solution

Answer to Problem 25P

In the given data the equilibrium price is $$7$ and the quantity traded is $40$ units

Explanation of Solution

In the given table, one can observe that at price $$7$ the amount of quantity supplied is equal to amount of quantity demanded that is $40$

Therefore, the equilibrium price is $$7$ and the quantity traded is $40$ units

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

The amount of quantity traded in between in the suppliers and consumers are the equilibrium quantity traded.

To determine

(c)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$9$

Expert Solution

Answer to Problem 25P

At price $$9$ there is surplus of good Z by $30$ units.

Explanation of Solution

In the given table at price, $$9$ quantity supplied is $50$ units and quantity demanded is $20$ units.

Since the quantity supplied is more than quantity demanded, therefore there is surplus at price $$9$ .

To calculate surplus

$Surplus= Qunatity Supplied−Qunatity Demanded=50−30=20$

Thus the surplus at price $$9$ is $20$ units

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market.

To determine

(d)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$3$

Expert Solution

Answer to Problem 25P

At price $$3$ , there is shortage of good Z by 60 units

Explanation of Solution

In the given table at price, $$3$ the quantity supplied is 20 units and quantity demanded in 80 units, since the demand is more than the supply. Therefore, shortage of good will occur at price

To calculate shortage

$Shortage=Quantity Demanded−Quantity Supplied=80−20=60$

Therefore ate price $$3$ shortage of good Z is 60 units.

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market

To determine

(e)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if demand for Z increased by $15$ at every price.

Expert Solution

Answer to Problem 25P

New equilibrium price of the good is $$8$ and the quantity traded is $45$ units.

Explanation of Solution

According to the given situation, the quantity demanded increases by $15$ units at every price point.

Therefore the new quantity demanded is represented in the table below

Demand	Demand	Demand	Supply	Supply
Price	Quantity demanded	New Quantity after addition of 15 Units	Price	Quantity supplied
$$10$	$10$	$10+15=25$	$$1$	$10$
$$9$	$20$	$20+15=35$	$$2$	$15$
$$8$	$30$	$30+15=45$	$$3$	$20$
$$7$	$40$	$40+15=55$	$$4$	$25$
$$6$	$50$	$50+15=65$	$$5$	$30$
$$5$	$60$	$60+15=75$	$$6$	$35$
$$4$	$70$	$70+15=85$	$$7$	$40$
$$3$	$80$	$80+15=95$	$$8$	$45$
$$2$	$90$	$90+15=105$	$$9$	$50$
$$1$	$100$	$100+15=115$	$$10$	$55$

After the addition of 15 units in quantity demanded column, one can observe the equilibrium price shifted at price $$8$ as the quantity supplied and demanded is equal and the quantity traded is $45$ units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

To determine

(f)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if the supply of Z is increased by $15$ units

Expert Solution

Answer to Problem 25P

When the supply is increased by 15 units the new equilibrium price will be $$6$ and the quantity traded is 60 units

Explanation of Solution

The new supply column when the supply of Z is increased by 15 units at each price point is shown as below

Demand	Demand	Supply	Supply
Price	Quantity demanded	Price	Quantity supplied	New quantity supplied with addition of 15 units
$$10$	$10$	$$1$	$10$	$10+15=25$
$$9$	$20$	$$2$	$15$	$15+15=30$
$$8$	$30$	$$3$	$20$	$20+15=35$
$$7$	$40$	$$4$	$25$	$25+15=40$
$$6$	$50$	$$5$	$30$	$30+15=45$
$$5$	$60$	$$6$	$35$	$35+15=50$
$$4$	$70$	$$7$	$40$	$40+15=55$
$$3$	$80$	$$8$	$45$	$45+15=60$
$$2$	$90$	$$9$	$50$	$50+15=65$
$$1$	$100$	$$10$	$55$	$55+15=70$

After the addition of 15 units in the supply column one can observe that the equilibrium is shifted at price $$6$ with equilibrium quantity traded as 60 units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

Answer 6

Chapter 4, Problem 25P

To determine

(a)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Illustrate demand and supply curve.

Expert Solution

Answer to Problem 25P

Following graph represents the demand and supply curve of good Z

EXPLORING ECONOMICS, Chapter 4, Problem 25P

Explanation of Solution

The above graph represents the supply and demand curve of good Z. The intersecting point is the equilibrium point at which the demand for the products is equal to the supply of the products. The upward movement of the supply curve represents that with an increase in the price of the product the supplier will increase the supply whereas the downwards movement of the demand curve represents a decrease in demand of the product with an increase in the price of the product.

Economics Concept Introduction

Introduction:

Demand and supply curve represents relationship between the quantity of product a supplier supplies in the market and quantity of product consumers demands. The point where supply and demand curve meets is referred to as equilibrium price. This is the price at which supplier agrees to supply the commodities and consumers agrees to buy at that price point.

Answer 7

Chapter 4, Problem 25P

To determine

(a)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Illustrate demand and supply curve.

Answer 8

Expert Solution

Answer to Problem 25P

Following graph represents the demand and supply curve of good Z

EXPLORING ECONOMICS, Chapter 4, Problem 25P

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

The above graph represents the supply and demand curve of good Z. The intersecting point is the equilibrium point at which the demand for the products is equal to the supply of the products. The upward movement of the supply curve represents that with an increase in the price of the product the supplier will increase the supply whereas the downwards movement of the demand curve represents a decrease in demand of the product with an increase in the price of the product.

Answer 13

Economics Concept Introduction

Introduction:

Demand and supply curve represents relationship between the quantity of product a supplier supplies in the market and quantity of product consumers demands. The point where supply and demand curve meets is referred to as equilibrium price. This is the price at which supplier agrees to supply the commodities and consumers agrees to buy at that price point.

Answer 14

To determine

(b)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the equilibrium price and the quantity traded

Expert Solution

Answer to Problem 25P

In the given data the equilibrium price is $$7$ and the quantity traded is $40$ units

Explanation of Solution

In the given table, one can observe that at price $$7$ the amount of quantity supplied is equal to amount of quantity demanded that is $40$

Therefore, the equilibrium price is $$7$ and the quantity traded is $40$ units

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

The amount of quantity traded in between in the suppliers and consumers are the equilibrium quantity traded.

Answer 15

To determine

(b)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the equilibrium price and the quantity traded

Answer 16

Expert Solution

Answer to Problem 25P

In the given data the equilibrium price is $$7$ and the quantity traded is $40$ units

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

In the given table, one can observe that at price $$7$ the amount of quantity supplied is equal to amount of quantity demanded that is $40$

Therefore, the equilibrium price is $$7$ and the quantity traded is $40$ units

Answer 21

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

The amount of quantity traded in between in the suppliers and consumers are the equilibrium quantity traded.

Answer 22

To determine

(c)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$9$

Expert Solution

Answer to Problem 25P

At price $$9$ there is surplus of good Z by $30$ units.

Explanation of Solution

In the given table at price, $$9$ quantity supplied is $50$ units and quantity demanded is $20$ units.

Since the quantity supplied is more than quantity demanded, therefore there is surplus at price $$9$ .

To calculate surplus

$Surplus= Qunatity Supplied−Qunatity Demanded=50−30=20$

Thus the surplus at price $$9$ is $20$ units

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market.

Answer 23

To determine

(c)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$9$

Answer 24

Expert Solution

Answer to Problem 25P

At price $$9$ there is surplus of good Z by $30$ units.

Answer 25

Expert Solution

Answer 26

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

In the given table at price, $$9$ quantity supplied is $50$ units and quantity demanded is $20$ units.

Since the quantity supplied is more than quantity demanded, therefore there is surplus at price $$9$ .

To calculate surplus

$Surplus= Qunatity Supplied−Qunatity Demanded=50−30=20$

Thus the surplus at price $$9$ is $20$ units

Answer 29

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market.

Answer 30

To determine

(d)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$3$

Expert Solution

Answer to Problem 25P

At price $$3$ , there is shortage of good Z by 60 units

Explanation of Solution

In the given table at price, $$3$ the quantity supplied is 20 units and quantity demanded in 80 units, since the demand is more than the supply. Therefore, shortage of good will occur at price

To calculate shortage

$Shortage=Quantity Demanded−Quantity Supplied=80−20=60$

Therefore ate price $$3$ shortage of good Z is 60 units.

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market

Answer 31

To determine

(d)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine whether it is surplus or shortage at price $$3$

Answer 32

Expert Solution

Answer to Problem 25P

At price $$3$ , there is shortage of good Z by 60 units

Answer 33

Expert Solution

Answer 34

Expert Solution

Answer 35

Expert Solution

Answer 36

Explanation of Solution

In the given table at price, $$3$ the quantity supplied is 20 units and quantity demanded in 80 units, since the demand is more than the supply. Therefore, shortage of good will occur at price

To calculate shortage

$Shortage=Quantity Demanded−Quantity Supplied=80−20=60$

Therefore ate price $$3$ shortage of good Z is 60 units.

Answer 37

Economics Concept Introduction

Introduction:

Surplus occurs when the quantity supplied by the supplier exceeds the quantity demanded in the market.

Shortage occurs when the quantity demanded by the consumers exceeds the quantity supplied by the supplier in the market

Answer 38

To determine

(e)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if demand for Z increased by $15$ at every price.

Expert Solution

Answer to Problem 25P

New equilibrium price of the good is $$8$ and the quantity traded is $45$ units.

Explanation of Solution

According to the given situation, the quantity demanded increases by $15$ units at every price point.

Therefore the new quantity demanded is represented in the table below

Demand	Demand	Demand	Supply	Supply
Price	Quantity demanded	New Quantity after addition of 15 Units	Price	Quantity supplied
$$10$	$10$	$10+15=25$	$$1$	$10$
$$9$	$20$	$20+15=35$	$$2$	$15$
$$8$	$30$	$30+15=45$	$$3$	$20$
$$7$	$40$	$40+15=55$	$$4$	$25$
$$6$	$50$	$50+15=65$	$$5$	$30$
$$5$	$60$	$60+15=75$	$$6$	$35$
$$4$	$70$	$70+15=85$	$$7$	$40$
$$3$	$80$	$80+15=95$	$$8$	$45$
$$2$	$90$	$90+15=105$	$$9$	$50$
$$1$	$100$	$100+15=115$	$$10$	$55$

After the addition of 15 units in quantity demanded column, one can observe the equilibrium price shifted at price $$8$ as the quantity supplied and demanded is equal and the quantity traded is $45$ units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

Answer 39

To determine

(e)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if demand for Z increased by $15$ at every price.

Answer 40

Expert Solution

Answer to Problem 25P

New equilibrium price of the good is $$8$ and the quantity traded is $45$ units.

Answer 41

Expert Solution

Answer 42

Expert Solution

Answer 43

Expert Solution

Answer 44

Explanation of Solution

According to the given situation, the quantity demanded increases by $15$ units at every price point.

Therefore the new quantity demanded is represented in the table below

Demand	Demand	Demand	Supply	Supply
Price	Quantity demanded	New Quantity after addition of 15 Units	Price	Quantity supplied
$$10$	$10$	$10+15=25$	$$1$	$10$
$$9$	$20$	$20+15=35$	$$2$	$15$
$$8$	$30$	$30+15=45$	$$3$	$20$
$$7$	$40$	$40+15=55$	$$4$	$25$
$$6$	$50$	$50+15=65$	$$5$	$30$
$$5$	$60$	$60+15=75$	$$6$	$35$
$$4$	$70$	$70+15=85$	$$7$	$40$
$$3$	$80$	$80+15=95$	$$8$	$45$
$$2$	$90$	$90+15=105$	$$9$	$50$
$$1$	$100$	$100+15=115$	$$10$	$55$

After the addition of 15 units in quantity demanded column, one can observe the equilibrium price shifted at price $$8$ as the quantity supplied and demanded is equal and the quantity traded is $45$ units.

Answer 45

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

Answer 46

To determine

(f)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if the supply of Z is increased by $15$ units

Expert Solution

Answer to Problem 25P

When the supply is increased by 15 units the new equilibrium price will be $$6$ and the quantity traded is 60 units

Explanation of Solution

The new supply column when the supply of Z is increased by 15 units at each price point is shown as below

Demand	Demand	Supply	Supply
Price	Quantity demanded	Price	Quantity supplied	New quantity supplied with addition of 15 units
$$10$	$10$	$$1$	$10$	$10+15=25$
$$9$	$20$	$$2$	$15$	$15+15=30$
$$8$	$30$	$$3$	$20$	$20+15=35$
$$7$	$40$	$$4$	$25$	$25+15=40$
$$6$	$50$	$$5$	$30$	$30+15=45$
$$5$	$60$	$$6$	$35$	$35+15=50$
$$4$	$70$	$$7$	$40$	$40+15=55$
$$3$	$80$	$$8$	$45$	$45+15=60$
$$2$	$90$	$$9$	$50$	$50+15=65$
$$1$	$100$	$$10$	$55$	$55+15=70$

After the addition of 15 units in the supply column one can observe that the equilibrium is shifted at price $$6$ with equilibrium quantity traded as 60 units.

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.

Answer 47

To determine

(f)

Assume the following information for demand and supply curve for good Z

Demand Demand Supply Supply
Price Quantity demanded Price Quantity supplied
$$10$ $10$ $$1$ $10$
$$9$ $20$ $$2$ $15$
$$8$ $30$ $$3$ $20$
$$7$ $40$ $$4$ $25$
$$6$ $50$ $$5$ $30$
$$5$ $60$ $$6$ $35$
$$4$ $70$ $$7$ $40$
$$3$ $80$ $$8$ $45$
$$2$ $90$ $$9$ $50$
$$1$ $100$ $$10$ $55$

Determine the new equilibrium price and quantity traded if the supply of Z is increased by $15$ units

Answer 48

Expert Solution

Answer to Problem 25P

When the supply is increased by 15 units the new equilibrium price will be $$6$ and the quantity traded is 60 units

Answer 49

Expert Solution

Answer 50

Expert Solution

Answer 51

Expert Solution

Answer 52

Explanation of Solution

The new supply column when the supply of Z is increased by 15 units at each price point is shown as below

Demand	Demand	Supply	Supply
Price	Quantity demanded	Price	Quantity supplied	New quantity supplied with addition of 15 units
$$10$	$10$	$$1$	$10$	$10+15=25$
$$9$	$20$	$$2$	$15$	$15+15=30$
$$8$	$30$	$$3$	$20$	$20+15=35$
$$7$	$40$	$$4$	$25$	$25+15=40$
$$6$	$50$	$$5$	$30$	$30+15=45$
$$5$	$60$	$$6$	$35$	$35+15=50$
$$4$	$70$	$$7$	$40$	$40+15=55$
$$3$	$80$	$$8$	$45$	$45+15=60$
$$2$	$90$	$$9$	$50$	$50+15=65$
$$1$	$100$	$$10$	$55$	$55+15=70$

After the addition of 15 units in the supply column one can observe that the equilibrium is shifted at price $$6$ with equilibrium quantity traded as 60 units.

Answer 53

Economics Concept Introduction

Introduction:

Equilibrium price is the price at which the amount of quantity supplied is equal to the amount of quantity demanded, it is the price at which both the supplier and consumer is ready to trade the goods.