Question

In: Economics

The weekly demand and supply schedules for pens in a free market are presented below: Price...

The weekly demand and supply schedules for pens in a free market are presented below:

Price (Rs/unit)

9

8

7

6

5

4

3

2

1

Quantity

demanded (units)

4

6

8

10

12

14

16

18

20

Quantity supplied (units)

20

18

16

14

12

10

8

6

4

(a)	Plot the demand and supply curves
(b)	What is the equilibrium price and quantity?

Expert Solution

(a) part a solution is given below -

(b) In the figure attached above point E shows equilibrium where both curve intersect each other. Therefore, equilibrium price is Rs 5 and equilibrium quantity is 12 units of pens.

Rahul Sunny answered 1 year ago

Q1 The demand and supply schedules for maize in a free market are as follows. Tonnes...

Q1 The demand and supply schedules for maize in a free market are as follows. Tonnes demanded per week 425 500 550 600 650 675 700 725 750 800 Tonnes supplied per week 1500 1000 750 600 500 400 300 225 150 100 Price per tonne ($) 160 144 128 112 96 80 64 48 32 16 (a) What is the equilibrium price? (b) If the maize sellers set their price at $144 per tonne, what would be the effect...

Given the following schedules relating to the weekly demand and supply of milk (in litres) for...

Given the following schedules relating to the weekly demand and supply of milk (in litres) for a given market, Quantity Demanded Price ($ per litres) Quantity Supplied 5,000 2.00 14,000 6,000 1.75 12,000 7,000 1.50 10,000 8,000 1.25 8,000 9,000 1.00 6,000 10,000 0.75 4,000 11,000 0.50 2,000 if a free market were allowed to operate, a. What would be the equilibrium price of a litre of milk? b. What would be the equilibrium quantity? c. Would there be a...

The market for Wolverine Root Beer is shown in the following demand and supply schedules: Price...

The market for Wolverine Root Beer is shown in the following demand and supply schedules: Price (6-pack of Wolverine Root Beer) Quantity Demanded Quantity Supplied 5.00 300 300 4.50 400 250 4.00 600 200 3.50 900 150 3.00 1400 100 Draw a graph to illustrate the market demand and supply for Wolverine Root Beer. What is the equilibrium price and quantity? Describe the situation that would result if the price of Wolverine Root...

The table below shows the supply and demand schedules for sales of bags of chips. PRICE...

The table below shows the supply and demand schedules for sales of bags of chips. PRICE (dollars/bag) QUANTITY DEMANDED QUANTITY SUPPLIED (bags/week) $1.00 200 110 $1.25 175 130 $1.50 150 150 $1.75 125 170 $2.00 100 190 Question 1: What is the market equilibrium? Question 2: Describe the situation in the chip market if the price were $1.75 per bag. Question 3: If the price is $1.75/bag, explain how the market reaches equilibrium. Question 4: A bad year for potatoes...

Using the following supply and demand schedules: Price Quantity Demanded &n

Using the following supply and demand schedules: Price Quantity Demanded Quantity Supplied $2 200 50 $4 150 80 $6 125 100 $8 110 110 $10 80 135 Draw the market in a graph and indicate the point of equilibrium. Show and explain the effect on this market of a price floor at $10 Show and explain the effect on this market of a price ceiling at $10 Explain, in your own words, why the production possibilities frontier (PPF) is a downward-sloping curve. Also, explain why all points inside of that curve represent inefficient...

. Define the term “price floor". b. Use supply and demand to identify the free-market...

. Define the term “price floor". b. Use supply and demand to identify the free-market equilibrium price and quantity of honey. c. Assume that the government imposes a price floor in the honey market. Illustrate and explain what effects the price floor will have in the honey market. d. What is the purpose of imposing a price floor?

Market Equilibrium Worksheet 1. The following table shows the supply and demand schedules in a market...

Market Equilibrium Worksheet 1. The following table shows the supply and demand schedules in a market for sandals. Price ($) Quantity Demanded (units) Quantity Supplied (units) 0 50 0 2 40 15 4 30 30 6 20 45 8 10 60 10 0 75 What is the equilibrium price in the sandals market? What is the equilibrium quantity in the sandals market? At a price of $2, will there be a surplus or shortage of sandals in this market? At...

The following table shows the weekly demand and supply in the market for orange juice in...

The following table shows the weekly demand and supply in the market for orange juice in Houston. Price Quantity Demanded Quantity Supplied (Dollars per gallon of orange juice) (Gallons of orange juice) (Gallons of orange juice) 2 500 50 4 400 150 6 300 200 8 200 300 10 100 450 On the following graph, plot the demand for orange juice using the blue point (circle symbol). Next, plot the supply of orange juice using the orange point (square symbol)....

Suppose the Aggregate Demand and Supply schedules for a hypothetical economy are as shown below: Amount...

Suppose the Aggregate Demand and Supply schedules for a hypothetical economy are as shown below: Amount of Real Domestic Price Level Amount of Real Domestic Output Demanded (billions) (Price Index) Output Supplied (billions) $200 300 $800 $400 250 $800 $600 200 $600 $800 150 $400 $1,000 100 $200 Use the data to graph the Aggregate Demand and Aggregate Supply curves. What will be the...

Using the schedules given, plot the demand curve and the supply curve on the below graph....

Using the schedules given, plot the demand curve and the supply curve on the below graph. Label the axes and indicate for each axis the units being used to measure price and quantity. Then answer the questions. Price Quantity demanded (bushels of wheat) Price Quantity supplied (bushels of wheat) $4.20 125,000 $4.20 230,000 4.00 150,000 4.00 220,000 3.80 175,000 3.80 210,000 3.60 200,000 3.60 200,000 3.40 225,000 3.40 190,000 3.20 250,000 3.20 180,000 3.00 275,000 3.00 170,000 A. Give the equilibrium...