2. The demand and Supply Schedules for potato chips are:
Price(rand per bag)
Quantity demanded(millions of bags a week)
Quantity Supplied(millions of bags a week)
5
160
130
6
150
140
7
140
150
8
130
160
9
120
170
10
110
180
a. Draw a graph of the potato chip market and mark in the equilibrium price and quantity. (10 marks)
b. if the price is R6 a bag, is there a shortage or a surplus and how does the price adjust? (5 marks)
1
Expert's answer
2019-03-27T06:06:42-0400
0.1x-8=-0.1x+21
0.2x=29
x=145- Equilibrium quantity.
0.1*145-8=6.5 Equilibrium price
If the price is R6 a bag, is there a shortage and price will rise.
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