10. Suppose the demand and supply curves for eggs in the United States are given
ID: 1153691 • Letter: 1
Question
10. Suppose the demand and supply curves for eggs in the United States are given by the following equations: Q100 20P Qs10 40P where Qa millions of dozens of eggs Americans would like to buy each year; Q, millions of dozens of eggs U.S. farms would like to sell each year; and P price per dozen eggs. a. Fill in the following table: QUANTITY DEMANDED (Qa PRICE (PER DOZEN) $ .50 $ 1.00 1.50 $2.00 $ 2.50 QUANTITY SUPPLIED (Q.) b. Use the information in the table to find the equilibrium c. Graph the demand and supply curves and identify the equi- price and quantity. librium price and quantity.Explanation / Answer
Answer a : Table showing information such as :
Qd = 100-20P put the value of P
QS = 10+40P put the value of P
Answer b : From the above table Equilibrium price is $1.50 where as Equilibrium quantity is 70 units. It shows that Equilibrium demanded is equal to Equilibrium supply.
Answer c: In the graph where Quantity demanded is equal to Quantity supplied. It shows that price is $1.50 and Equilibrium quantity is 70 units.
Price ( Per dozen) Qd Qs 0.50 90 30 1 80 50 1.50 70 70 2.00 60 90 2.50 50 110Related Questions
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