Question

The following schedules shows the demand and supply for a product.

Schedule 1: Demand of individual consumers

Schedule 2: Supply from individual producers

Schedule 1				Schedule 2
Price	Consumer X	Consumer Y	Consumer Z	Price	Producer A	Producer B	Producer C
10	40	40	60	10	20	20	20
20	35	35	50	20	25	30	25
30	30	30	40	30	30	40	30
40	25	25	30	40	35	50	35
50	20	20	20	50	40	60	40
60	15	15	10	60	45	70	45
70	10	10	0	70	50	80	50
80	0	0	0	80	55	90	55

Calculate the market demand and market supply.

Answer 1

Answer

The market demand is the sum of individual consumer's quantity demanded at a particular price in the market.

So, here, the market demand is the sum of the quantity demanded by consumer X, consumer Y and consumer Z at a particular market price.

Schedule 1
Price	Consumer X	Consumer Y	Consumer Z	Market Demand
10	40	40	60	140
20	35	35	50	120
30	30	30	40	100
40	25	25	30	80
50	20	20	20	60
60	15	15	10	40
70	10	10	0	20
80	0	0	0	0

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The market supply is the sum of individual producer's quantity supplied at a particular price in the market.

So, here, the market supply is the sum of the quantity supplied by producer A, producer B and producer C at a particular market price.

Schedule 2
Price	Producer A	Producer B	Producer C	Market Supply
10	20	20.	20.	60
20	25	30	25	80
30	30	40	30	100
40	35	50	35	120
50	40	60	40	140
60	45	70	45	160
70	50	80	50	180
80	55	90	55	200

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From the above two tables, we see that at price 30, both the quantity demanded and the quantity supplied in the market are 100 units. So, the equilibrium price in the market is 30 and the equilibrium quantity in the market is 100 units.

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