MicroHomeworkSelectionAnswers - Supply and Demand Reference Mankiw Principles Chapter 4 Problem 10 The market for hamburgers has the following supply

# MicroHomeworkSelectionAnswers - Supply and Demand Reference...

This preview shows page 1 - 4 out of 66 pages.

Supply and Demand Reference : Mankiw, Principles, Chapter 4, Problem 10. The market for hamburgers has the following supply and demand schedule :PQDQS1.002001101.251701301.501451451.751251552.001101602.25100165a. Graph the demand and supply curves. What is the equilibrium price andquantity in this market ? b. If the actual price in this market wereabovethe equilibrium price, whatwould drive the market toward equilibrium ?Hints :Assume perfect information and rationality on both sides of the market. If 1
c. If the actual price in this market werebelowthe equilibrium price, whatwould drive the market toward the equilibrium ?Hints :Assume perfect information and rationality on both sides of the market. If Reference : Mankiw, Principles, Chapter 4, Problem 13. Market research has revealed the following information about the market forpizza. The demand schedule can be represented by the equationQD=380-20×PwhereQDis the quantity demanded andPis the price. The supply schedule canbe represented by the equationQS=-120+30×PwhereQSis the quantity supplied. Calculate the equilibrium price and quantity inthe market for pizza. 2

#### You've reached the end of your free preview.

Want to read all 66 pages?