Subpart (a):
To determine: Draw the demand and supply.
Introduction:
Demand:
Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.
Demand curve:
Demand curve shows the quantity demand at different price levels. Since there is a negative relationship among the price and quantity demand, the demand curve slopes downward.
Supply:
Supply refers to the total value of goods and services that are available for purchase at a particular price in a given period of time.
Supply curve:
Supply curve shows the quantity supplied at different price levels. Since there is a positive relationship exists among the price and quantity supply, the supply curve slopes upward.
Subpart (b):
To determine: Equilibrium.
Introduction:
Equilibrium point:
Equilibrium point occurs at the point where the demand curve is intersects with the supply curve.
Subpart (c):
To determine: Draw the demand and supply.
Introduction:
Demand:
Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.
Demand curve:
Demand curve shows the quantity demand at different price levels. Since there is a negative relationship among the price and quantity demand, the demand curve slopes downward.
Supply:
Supply refers to the total value of goods and services that are available for purchase at a particular price in a given period of time.
Supply curve:
Supply curve shows the quantity supplied at different price levels. Since there is a positive relationship exists among the price and quantity supply, the supply curve slopes upward.
Subpart (d):
To determine: Equilibrium.
Introduction:
Equilibrium point:
Equilibrium point occurs at the point where the demand curve is intersects with the supply curve.
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Chapter 6 Solutions
Principles of Managerial Finance, Student Value Edition Plus MyLab Finance with Pearson eText - Access Card Package (15th Edition) (Pearson Series in Finance)
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