1. Refer to figure below. If the current market price is £15, then... P £18 £15 £12 £9 £6 0 100 200 300 400 500 S D (thousands) there would be a surplus of 200 units Othere would be a shortage of 600 units O there would be a shortage of 200 units Othere would be a surplus of 600 units.
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- The following table shows the demand and supply of tickets of a football game which will be held at Shah Alam Stadium. Unit Price (RM) Market Demand (units) Market Supply (units) 20 5000 3500 40 4000 3500 60 3000 3500 80 2000 3500 100 1000 3500 a) On your foolscap paper, draw the demand and supply curves. Label all axes, all curves and the equilibrium point. (6m) b) How much is the equilibrium price and equilibrium quantity? (2m) c) At which price will there be a surplus of 2500 tickets? (1m) d) What will happen when the market price is RM40? Show your answer on the same diagram. (3m) e) Why is the supply of tickets fixed at 3500? (1m)img' (a If po increases, what happens to the demand and supply of public transportation (shifts left/shifts right/doesn’t change) What happens to the equilibrium quantity and price for public transportation? (increase/decrease) (b)At a given price p, as oil becomes more expensive (po increases), does the (own) price elasticity of demand for public transportation increase / decrease / stay the same? (c) Calculate the cross-price elasticity of public transportation demand with respect to the oil price po, at the point p = 1 and po = 2. Are the two goods (public transportation and oil) substitutes or complements, or unrelated?D Question 26 Price $60 40 20 0 50 100 Quantity 150 200 Supply a shortage of 100 units, and price will tend to fall. equilibrium, and price will neither rise nor fall. a shortage of 100 units, and price will tend to rise. a surplus of 100 units, and price will tend to rise. Demand Refer to the above diagram. A price of $20 in this market will result in:
- PRICE (Yen per gram) 100 90 80 70 60 40 30 20 10 0 0 0 Demand + 20 40 60 80 100 120 140 160 180 200 QUANTITY (grams of uff per month) Graph Input Tool Demand for Uff Price of Uff (Yen per gram) to eat my uff this morning, but there wasn't any Quantity Demanded DEMAND SHIFTERS Average Income -(Yen per month) Price of Tulg (Yen per gram) Price of Snick (Yen per gram) Of Suppose that the price of a gram of uff decreased from 50 yen to 40 yen. This would cause a an increase in 50 100 100 20 50 Plug any value lower than the current number into the Average Income box. A decrease in average income causes a leftward the demand curve. the demand curve and therefore When the prices of tulg or snick change, there is a shift of the demand curve for uff. The directions of these changes imply that snick and uff are , and that tulg and uff are . For example, a Hermetian might say, "I went in my fridge. So instead of having uff for breakfast, I ate someWhat is the total surplus : Price 110 - Supply 100 a) 800 b) 1000 c) 1500 d) 2000 e) 2500 f) 3500 g) 5000 90 80 70 60- Demand 50 45 40 + 30 20 10 ++++++ 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 DuantityRefer to the figure below. If the price of a handbag is £60, then... Price £90 £75 £60 £45 £30 0 Handbags S there would be a shortage of 540 units. there would be a surplus of 600 units. there would be no surplus or shortage. there would be a shortage of 600 units. D 200 400 600 800 1000 Quantity
- Using the table below calculate the cross-price elasticity of flour with respect torice [4 marks]P1 P2 Q1 Q2Flour $9 $12 40 25Rice $4.45 $6.75 150 125Demand schedule and supply schedule Price Quantity Demanded Quantity Supplied $ 6 68 28 $10 20 40 a)Using the demand schedule below, write down quantity demanded as a function of price.Using the supply schedule below, write down quantity supplied as a function of price. b)Find equilibrium price and equilibrium quantity. c)Find price elasticity of supply when price changes from $6 to $10. Find price elasticity ofsupply when price changes from $10 to $16.Assignment 2 1. The graph below shows the demand curve of two goods by an individual, use the information in the graph to answer the questions that follows; Price GH¢30.00 B. GHe25.00 D1 D2 2000 2500 3000 Quantity (gallons per day) (a) Calculate the price elasticity of demand for the demand curve, D1, from point A to point C, and the price elasticity of demand for D2 from point A to point B. which demand curve is more elastic, Di or D2? Briefly explain your answer. (b) Given the expenditure function as e(p.q)-pq where p is the price and q is quantity demand. Suppose the individual was purchasing 2000 gallons per day at a price of GH¢30.00 per gallon and the price is cut to GHc25.00 per gallon. calculate thhe change in total expenditure if the demand curve of the individual is D1? What will be the change in total expenditure if demand is D2?
- The demand of a produa y depor another product X (P.). The price elasticity of with respect to X is *-0.8. (a) Are X and Y substitutes or complement? **rice the price of and the cross-u ofr (b) Suppose now P, increases by 2%, and P. decreases by Sh **** Will the quantity demanded of y increase or decrease contPrice (dollars per bushel) Quantity Demanded (bushels) 10 0. B. 8. 4. 6. 8. 4. 12 2. 16 (1) The table above gives the demand schedule for peas. As you move from point A to point B, what is the price elasticity of demand? (I) The table above gives the demand schedule for peas. As you moOve from point C to point D, what is the price elasticity of demand? () The table above gives the demand schedule for peas. As you move from point C to point D, what is the changes of the total revenue?For a good with the following demand: Quantity Demanded Price 6000 $20 14,000 $15 (a) Calculate the price elasticity of demand using the Midpoint Method. (b) Is the demand for this good considered elastic or inelastic? (c) Do you think it is more likely that the average consumer will consider this good a necessity or a luxury? How did you determine your answer? (d) If sellers' production costs rise, will they be able to pass these higher costs onto the buyers in the form of higher prices? Explain.
