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 3 years ago

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