BU204 02 Langhoff Melissa Unit3
Unit 3 Assignment
1) The table below indicates the total quantity supplied and demanded of flashlights at different price levels.
Price
Quantity Demanded
Per Month
Quantity Supplied
Per Month
$5
6,000
10,000
$4
8,000
8,000
$3
10,000
6,000
$2
12,000
4,000
$1
14,000
2,000
a. Draw Supply and Demand Curves. b. What are the equilibrium price and the equilibrium quantity? The equilibrium price is $4 and the equilibrium quantity is 8,000 flashlights.
c. Suppose the market price is $5. What problem would exist in the market? Does it lead to surplus or shortage? How do you expect this problem will affect the price? Indicate this on the supply and demand graphs. If the market price is $5 means that the consumers are demanding a smaller quantity. The consumers are demanding 6000 flashlights where at $5 the quantity supplied is 10,000. There will be a surplus if the market price is at $5.
d. Assume the market price is currently $2. What problem would occur in the market due to this price? Will it be shortage or surplus? What will its effect on the price? Indicate this on the supply and demand graph. With the market price at $2 the quantity demanded is going to be 12,000 however the quantity supplied is going to be 4,000 causing a shortage.
2) Consider supply and demand schedules for Alaska Salmon indicated in the following tables to answers questions from a –d below.
Price of Salmon per Pound
Quantity of Salmon Supplied (pounds)
$30
900
$25
700
$20
600
$15
300
$10
100
First, assume that Alaskan Salmon can be sold only in the United States. The U.S. demand schedule is as follows:
Price of Salmon per Pound
USA Quantity of Salmon Demanded (pounds)
$30
100
$25
300
$20
600
$15
700
$10
900
a Referring to the schedules of supply and demand, what is the equilibrium price of Salmon? What is the equilibrium quantity of salmon demanded and supplied at the equilibrium price?
The equilibrium price would be $20 and the equilibrium demand and supplied is 600 pounds of salmon.
1) The table below indicates the total quantity supplied and demanded of flashlights at different price levels.
Price
Quantity Demanded
Per Month
Quantity Supplied
Per Month
$5
6,000
10,000
$4
8,000
8,000
$3
10,000
6,000
$2
12,000
4,000
$1
14,000
2,000
a. Draw Supply and Demand Curves. b. What are the equilibrium price and the equilibrium quantity? The equilibrium price is $4 and the equilibrium quantity is 8,000 flashlights.
c. Suppose the market price is $5. What problem would exist in the market? Does it lead to surplus or shortage? How do you expect this problem will affect the price? Indicate this on the supply and demand graphs. If the market price is $5 means that the consumers are demanding a smaller quantity. The consumers are demanding 6000 flashlights where at $5 the quantity supplied is 10,000. There will be a surplus if the market price is at $5.
d. Assume the market price is currently $2. What problem would occur in the market due to this price? Will it be shortage or surplus? What will its effect on the price? Indicate this on the supply and demand graph. With the market price at $2 the quantity demanded is going to be 12,000 however the quantity supplied is going to be 4,000 causing a shortage.
2) Consider supply and demand schedules for Alaska Salmon indicated in the following tables to answers questions from a –d below.
Price of Salmon per Pound
Quantity of Salmon Supplied (pounds)
$30
900
$25
700
$20
600
$15
300
$10
100
First, assume that Alaskan Salmon can be sold only in the United States. The U.S. demand schedule is as follows:
Price of Salmon per Pound
USA Quantity of Salmon Demanded (pounds)
$30
100
$25
300
$20
600
$15
700
$10
900
a Referring to the schedules of supply and demand, what is the equilibrium price of Salmon? What is the equilibrium quantity of salmon demanded and supplied at the equilibrium price?
The equilibrium price would be $20 and the equilibrium demand and supplied is 600 pounds of salmon.