Exercise micro chapter 2: Demand and Supply

Exercise Chapter 2 : Demand and Supply

 1.                  The following table shows the demand and supply schedule for computers.

Price (RM)	Quantity Demanded (units)	Quantity Supplied (units)
7000	2000	14000
6000	6000	12000
5000	10000	10000
4000	14000	8000
3000	18000	6000

a.                  What is the meaning of equilibrium price?

b.                  What are the equilibrium and quantity of computers based on the above table?

c.                   Based on the above figure, plot the demand and supply curve in the same graph paper.

2.                  The following schedules show the demand and supply for a product.

Price	Consumer X	Consumer Y	Consumer Z	Producer A	Producer B	Producer C
10	40	40	60	20	20	20
20	35	35	50	25	30	25
30	30	30	40	30	40	30
40	25	25	30	35	50	35
50	20	20	20	40	60	40
60	15	15	10	45	70	45

a.                  Calculate the market demand and supply

b.                  Plot the market demand curve and market supply curve on the same graph paper

c.                   Determine the market equilibrium price and quantity

d.                  At the price of RM40, state whether there is a surplus or shortage.  How much is the surplus or shortage.

e.                  Based on the market demand and market supply, find the value of demand elasticity if the price increases from RM20 to RM40.