Price 32 30 28 26 24 22 20 18 16 14

Finding the market price Consider the market demand and supply schedules for chocolate bars. Price of a chocolate bar (cents) 50 40 30 20 10 5 Quantity demanded per month 100,000 150,000 200,000 260,000 330,000 400,000 Quantity supplied per month 420,000 300,000 200,000 120,000 60,000 40,000 On graph paper plot the demand and supply curves for chocolate bars on one graph with 'Price of a chocolate bar' on the vertical axis and 'Quantity per month' along the bottom axis. 1 Using the above table state at which price demand equals supply. This will be the market price for chocolate bars because at that price producers are willing to make and sell just as many bars as consumers are willing to buy. 2 a Find the market price of chocolate bars using your demand and supply curves. b 3 What is the quantity of chocolate bars traded at this price in the market? a When the quantity demanded is greater than the quantity supplied economists say there is an excess demand. At which prices in the table…

Consider the market for potatoes are considered as inferior good and income rises at the same time that low temperature kills some potato buds. Change in demand? Change in supply? Change in market equilibrium price? Change in market equilibrium quantity? Graph?

K A retail chain will buy 700 cordless phones if the price is $40 each and 500 if the price is $50. A wholesaler will supply 550 phones at $20 each and 1950 at $60 each. Assuming that the supply and demand functions are linear, find the market equilibrium point and explain what it means. Market equilibrium occurs when the number of units is and the price is $ per unit.