Answer to Question #86594 in Microeconomics for Nhlamulo

Question

The demand and supply schedules for potato chips are :

Price(rand per bag) QD Qs

5 160 130
6 150 140
7 140 150
8 130 160
9 120 170
10 110 180

a. Draw a graph of the potato chip market and mark in the equilibrium price and quantity.

Answer 1

In equilibrium Qd = Qs and it is the point of demand and supply curves intersection.

So, Qe = 145 bags and Pe = 6.5 rand.