Answer to Question #87491 in Microeconomics for mashele vukosi

Question #87491
2. The demand and Supply Schedules for potato chips are:
Price(rand per bag) Quantity demanded(millions of bags a week) Quantity Supplied(millions of bags a week)
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. (10 marks)
b. if the price is R6 a bag, is there a shortage or a surplus and how does the price adjust? (5 marks)
1
Expert's answer
2019-04-09T08:50:36-0400

a. In equilibrium Qs = Qd = 145 units - equilibrium quantity, P = 6.5 - equilibrium price.

b. If the price is R6 a bag, then there is a shortage, because Qd>Qs (150>140), so the price will rise.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS