price of cheese(Rands) Quantity demanded by ANNA( in kilograms) Quantity demanded by Beauty(in kilograms) Quantity demanded...

price of cheese(Rands)	Quantity demanded by ANNA( in kilograms)	Quantity demanded by Beauty(in kilograms)	Quantity demanded by clive( in kilograms)
R35	0kg	0kg	0kg
R30	1kg	1kg	0kg
R25	1kg	2kg	1kg
R20	2kg	2kg	2kg
R15	2kg	3kg	3kg
R10	3kg	3kg	4kg
R5	3kg	4kg	5kg

THE PRODUCERS OF CHEESE TO THIS MARKET

Price of cheese

qUANTITY SUPPLIED(IN KILIGRAMS)

R35

R30

R25

R20

R15

R10

Assuming that there are three people in the market for cheese. construct the total market demand curve and supply curve on the same set of axes. Be sure to include all labels and clearly show the equilibrium price and quantity in the market.

my subject is economics

Solutions

Expert Solution

Answer. Equilibrium Price = 20, Equilibrium Quantity = 6

Explanation

Total demand in the economy =Quantity demanded by ANNA + Quantity demanded by Beauty +Quantity demanded by Clive.

Using the given information the following Demand and Supply schedule and Curve are prepared.

(i)	(ii)	(iii)	(iv)	(v)= (ii)+(iii)+(iv)	(vi)
Price	Quantity Demanded by ANNA	Quantity Demanded by Beauty	Quantity Demanded by Clive	Total Demand	Total Supply
5	3	4	5	12	0
10	3	3	4	10	2
15	2	3	3	8	4
20	2	2	2	6	6
25	1	2	1	4	8
30	1	1	0	2	10
35	0	0	0	0	12

Equilibrium takes place where demand is equal to supply. From the above graph, we know that equilibrium takes place at Price = 20. At this price, quantity demanded is equal to quantity supplied i.e. 6 kgs

Rahul Sunny answered 1 year ago

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