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Language Accessibility 10 1112 Ats price of $1 50 per dotes, how masy bagels are

ID: 1110744 • Letter: L

Question

Language Accessibility 10 1112 Ats price of $1 50 per dotes, how masy bagels are demanded per month? At a price of $1.50 pe dam, how many bagels ue supplied month? Is there a shortage or surplus? Qaniiy thousands of dorens per month At a price ef $1.50 per dozen, 6 barels are demanded per mouth. At a price of S1.50 per dozen, bageb are supplied per month. There will be a Inflati Aa price of $3.00 per dozan, hbow masy bagels are demanded per month? At a price of $3.00 per o bow many bagels are supplied per month? ls there a shortage or surphus? ta price of $3.00 per dozen, 12 bagels are demanded per month. At a price of $3.00 per Jozen, 10 bageh are supplied per month. There will be a c What is the equilibrium price of bagels? What is the equilibrium quantity per month? The equilbriem price of bages ib $2.50 and equilibrium quantity per month is S bagels. We can see that the demand curve D aad the supply curve S intersects both at equilibrism golat where associated price is $2.50 and quantity per month is 3 bagels L I bars is a gocersment Iintervention in the market such as price foor or ceiling, what will bappen to

Explanation / Answer

Ans:

1) At a price of $1.5 per dozen, 12 bagels are demanded per month and at a price of $1.5 per dozen, 4 bags are supplied per month. There will be a shortage of 8 bagels i.e(12-4).

2) At a price of $3 per dozen, 6 bagels are demanded per month and at a price of $3 per dozen, 10 bags are supplied per month. There will be a surplus of 4 bagels i.e(10-6).

3) The equilibrium price is $2.5 per bagels and the equlibrium quantity is 8 bagels per month. It is where supply and demand curve intersects.

4) In case of price floor,when they are set above the equilibrium price  there will be a possibility of excess supply or a surplus.

In case of Price ceilings, when they are set below the equilibrium price  there will be a possibility of excess demand or a supply shortage.