Module 2

# Module 2 - price and quantity Price Quantity Demanded...

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Unformatted text preview: price and quantity. Price Quantity Demanded Quantity Suppplied \$1.00 500 100 \$2.00 400 120 \$3.00 350 150 \$4.00 320 200 \$5.00 300 300 \$6.00 275 410 \$7.00 260 500 \$8.00 230 650 \$9.00 200 800 \$10.00 150 975 Equilibrium price and equilibrium quantity is where quantity demanded equals quantity supplied. we see highleted yellow on the table, aslo the greenline on the graph that at \$5, quantity demanded and quantity supplied are equal at 300. So, equilibrium price = \$5 and equilibrium quantity = 300. a. Using the following schedule, define the equilibrium 1 2 3 4 5 6 7 8 9 10 200 400 600 800 1000 1200 Quantit Quantit Price Q u a n t i t y E ty Demanded ty Suppplied Equilibrium \$10. What will occur? Price Quantity Demanded Quantity Suppplied \$1.00 500 100 \$2.00 400 120 \$3.00 350 150 \$4.00 320 200 \$5.00 300 300 \$6.00 275 410 \$7.00 260 500 \$8.00 230 650 \$9.00 200 800 \$10.00 150 975 the table and graph shows that as price rises, demand falls, and supply rises. at a price of \$10 demand is 150 and supply is 975 creating a surplus or excees of 825 (975 - 150) b. Describe the situation at a price of 1 2 200 400 600 800 1000 1200 2 3 4 5 6 7 8 9 10 150 975 Quantity Deman Quantity Suppp nded lied \$2. What will occur?\$2....
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## This note was uploaded on 08/04/2011 for the course ECN 601 taught by Professor Professor during the Spring '10 term at Grand Canyon.

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Module 2 - price and quantity Price Quantity Demanded...

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