Refer to the graph below, which represents typical economic information about th

Question

Refer to the graph below, which represents typical economic information about the amount of a product demanded (downward-sloping line) and supplied (upward-sloping line) at various prices 2. 5160 a. At what price is quantity demanded equal to 2000? b. At what price is quantity demanded equal to zero? c. At what price is quantity supplied equal to 1400? d. What is the equilibrium quantity? (Where quantity demanded and quantity supplied are equal.) e. What is the equilibrium price? (Where quantity demanded and quantity supplied are equal.)

Explanation / Answer

Solution :- 2 :-

(a) $90

(b) $140

(c) $140

(d) 1200

(e) $110

Solution 3 :-

(a) Sales at price $12 =

Q = 2000 - 100 P = 2000 - 100(12) = 800

(b) Price in case of Q = 1000

Q = 2000 - 100 P  

= 1000 = 2000 - 100P

= 100P = 1000

therefore P = $10

(c) Price at which Q is 0

Q = 2000 - 100 P =

= 0 = 2000 - 100P

= 100P = 2000

therefore P = 20

At price 20 the sales is zero

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