Price Demand Supply
$10 5 105
$9 10 90
$8 15 75
$7 20 60
$6 25 45
$5 30 30
$4 35 15
$3 40 0
Question 7: Calculate the price elasticity of demand at the equilibrium price
(range is from $1 below equilibrium to $1 above equilibrium)
Question 8: Would firms increase revenue with a cut in prices or not? Why or why not?
Question 9: If supply and demand increase at the same time, what happens to
the equilibrium quantity?
Question 10: If supply decreased and demand increased at the same time, what happens to
the equilibrium price?
Price Demand Supply
$10 5 105
$9 10 90
$8 15 75
$7 20 60
$6 25 45
$5 30 30
$4 35 15
$3 40 0
Question 7: Calculate the price elasticity of demand at the equilibrium price
(range is from $1 below equilibrium to $1 above equilibrium)
Question 8: Would firms increase revenue with a cut in prices or not? Why or why not?
Question 9: If supply and demand increase at the same time, what happens to
the equilibrium quantity?
Question 10: If supply decreased and demand increased at the same time, what happens to
the equilibrium price?
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Related textbook solutions
Related questions
Assume the following information for the demand and supply curves for good Z.
Price (in $) | Demand (in units) | Supply (in units) |
1 | 100 | 10 |
2 | 90 | 15 |
3 | 80 | 20 |
4 | 70 | 25 |
5 | 60 | 30 |
6 | 50 | 35 |
7 | 40 | 40 |
8 | 30 | 45 |
9 | 20 | 50 |
10 | 10 | 55 |
1. Draw the corresponding supply and demand curves.
2. What are the equilibrium price and quantity traded?
3. Would a price of $9 result in a shortage or a surplus? How large?
4. Would a price of $3 result in a shortage or a surplus? How large?
5. If the demand for Z increases by 15 units at every price, what would be the new equilibrium price and quantity traded be?
6. Given the original demand for Z, if the supply of Z were increased by 15 units at every price, what would be the new equilibrium price and quantity traded be?