Answer to Question #316303 in Microeconomics for Axis

Question

5. Consider the demand and supply functions for the notebooks market.

𝑄𝐷=10,000−100𝑝 𝑄𝑆=900𝑝

a. Make a table with the corresponding supply and demand schedule.

b. Draw the corresponding graph.

c. Is it possible to find the price and quantity of equilibrium with the graph method?

d. Find the price and quantity of equilibrium by solving the system of equations.

Answer 1

A)

Given the Q_d=10,000-100p and Q_s=900p

Price Quantity demanded Quantity supplied

0 10,000 0

5 9,500 4,500

10 9,000 9,000

15 8,500 13,500

20 8,000 18,000

B) Graph

C) From the graph Equilibrium (P,Q) IS

P=$10

Q=9,000

D)

At equilibrium Q_d=Q_s ,where Q_d=10,000-100P and Q_s=900P

10000-100P=900P

1000P=10,000

P=$10

Q_d=10,000-100p

=10,000-(100$\times$10)

=10,000-1000

Q=9,000

Therefore at equilibrium P=$10,Q=900