Keiser University Supply and Demand Worksheet Please show work as detailed as possible and give explanationQuestion 2 , A and B CHAPTER 3 Supply and Demand

Keiser University Supply and Demand Worksheet Please show work as detailed as possible and give explanationQuestion 2 , A and B CHAPTER 3
Supply and Demand
59
2. Consider the following supply and demand curves for a certain product.
=
es –
25,000P
Qp = 50,000 – 10,000P
a. Plot the demand and supply curves.
b. What are the equilibrium price and equilibrium quantity for the industry? Determine
the answer both algebraically and graphically. (Round to the nearest cent.)
3. The following relations describe the supply and demand for posters.
Qo 65,000 10,000P
Qs = –35,000 + 15,000P
where Q is the quantity and Pis the price of a poster, in dollars.
a. Complete the following table.
Price
Qs
Surplus or Shortage
QD
$6.00
5.00
4.00
3.00
2.00
1.00
b. What is the equilibrium price?
4. The following relations describe monthly demand and supply for a computer support ser-
vice catering to small businesses.
Qp = 3,000 – 10P
Qs = –1,000 + 10P
where Q is the number of businesses that need services and Pis the monthly fee, in dollars.
a. At what average monthly fee would demand equal zero?
b. At what average monthly fee would supply equal zero?
c. Plot the supply and demand curves.
d. What is the equilibrium price/output level?
e. Suppose demand increases and leads to a new demand curve:
Qd = 3,500 – 10P
What is the effect on supply? What are the new equilibrium Pand Q?
f. Suppose new suppliers enter the market due to the increase in demand so the new supply
curve is Q=-500 + 10 P. What are the new equilibrium price and equilibrium quantity?
g. Show these changes on the graph.
5. The ABC marketing consulting firm found that a particular brand of tablet PCs has the
following demand curve for a certain region:
Q = 10,000 – 200P + 0.03Pop + 0.61 + 0.2A
where Q is the quantity per month, Pis price ($), Pop is population, I is disposable income
per household (S), and A is advertising expenditure ($).
a. Determine the demand curve for the company in a market in which P= 300,
Pop = 1,000,000, I = 30,000, and A = 15,000.
b. Calculate the quantity demanded at prices of $200, $175, $150, and $125.
c. Calculate the price necessary to sell 45,000 units.
I
jij
G
IK
59
CHAPTER 3
Supply and Demand
59
2. Consider the following supply and demand curves for a certain product.
=
es –
25,000P
Qp = 50,000 – 10,000P
a. Plot the demand and supply curves.
b. What are the equilibrium price and equilibrium quantity for the industry? Determine
the answer both algebraically and graphically. (Round to the nearest cent.)
3. The following relations describe the supply and demand for posters.
Qo 65,000 10,000P
Qs = –35,000 + 15,000P
where Q is the quantity and Pis the price of a poster, in dollars.
a. Complete the following table.
Price
Qs
Surplus or Shortage
QD
$6.00
5.00
4.00
3.00
2.00
1.00
b. What is the equilibrium price?
4. The following relations describe monthly demand and supply for a computer support ser-
vice catering to small businesses.
Qp = 3,000 – 10P
Qs = –1,000 + 10P
where Q is the number of businesses that need services and Pis the monthly fee, in dollars.
a. At what average monthly fee would demand equal zero?
b. At what average monthly fee would supply equal zero?
c. Plot the supply and demand curves.
d. What is the equilibrium price/output level?
e. Suppose demand increases and leads to a new demand curve:
Qd = 3,500 – 10P
What is the effect on supply? What are the new equilibrium Pand Q?
f. Suppose new suppliers enter the market due to the increase in demand so the new supply
curve is Q=-500 + 10 P. What are the new equilibrium price and equilibrium quantity?
g. Show these changes on the graph.
5. The ABC marketing consulting firm found that a particular brand of tablet PCs has the
following demand curve for a certain region:
Q = 10,000 – 200P + 0.03Pop + 0.61 + 0.2A
where Q is the quantity per month, Pis price ($), Pop is population, I is disposable income
per household (S), and A is advertising expenditure ($).
a. Determine the demand curve for the company in a market in which P= 300,
Pop = 1,000,000, I = 30,000, and A = 15,000.
b. Calculate the quantity demanded at prices of $200, $175, $150, and $125.
c. Calculate the price necessary to sell 45,000 units.
I
jij
G
IK
59

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