Answer to Question #187995 in Microeconomics for Yvette

Question

1. The table below shows information on the demand and supply for Chicken, where the quantities of Chicken are measured in thousands.

Price Qd Qs

GHS 120 50 36

GHS 150 40 40

GHS 180 32 48

GHS 210 28 56

GHS 240 24 70

Table 1. Demand and Supply for Chicken

a. What is the quantity demanded and the quantity supplied of Chicken at a price of GHS 210?

b. At what price is the quantity supplied equal to 48,000 Chickens?

c. Graph the demand and supply curve for Chickens. Determine the equilibrium price and quantity from the graph?

d. If the price was GHS 120, what would the quantities demanded and supplied be?

Would a shortage or surplus exist? If so, how large would the shortage or surplus be?

Answer 1

a) Demand= 28,000.00

Supply= 56,000.00

b) Price=180.00

c) Plot a graph of Quantity demanded and Quantity supplied against price. Equilibrium is obtained where the two lines, QD and QS intersect each other.

d) Demand= 50,000.00

Supply= 36,000.00

50,000.00 is the base data for the demand in the market. Suppliers only provide 36,000.00 which means that there is a shortage.