Chapter 4 1. The following table shows information on the conditions of demand a

Question

Chapter 4 1. The following table shows information on the conditions of demand and supply for bicycles, where the quantities of bicycles are measured in thousands a. What is the quantity demanded and the quantity supplied at a price of $210? b. At what price is the quantity supplied equal to 48,000? c. Does the quantity demanded rise or fall as price increases? Briefly explain this pattern d. Does the quantity supplied rise or fall as price increases? Briefly explain this pattern Quantity Demanded Quantity Supplied Price in thousands in thousands $120 $150 $180 $210 $240 50 40 32 28 24 36 40 48 56 70

Explanation / Answer

1) What is the quantity demanded and quantity supplied at a price of $210

Solution: Quantity demanded = 28,000; Quantity supplied = 56,000

Working:

Quantity Demanded Quantity Supplied

Price in thousands in thousands

$120 50 36

$150 40 40

$180 32 48

$210 28 56

$240 24 70

2) At what price is the quantity supplied equal to 48,000?

Solution: Price : 180

Working:

Quantity Demanded Quantity Supplied

Price in thousands in thousands

$120 50 36

$150 40 40

$180 32 48

$210 28 56

$240 24 70

3) Does the quantity demanded rise or fall as price increases? Briefly explain this pattern

Solution: As the price rises the quantity demanded decreases

4) Does the quantity supplied rise or fall as price increases? Briefly explain this pattern

Solution: As the price rises the quantity supplied increases

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.