The following information relates to demand and supply schedule for good.Price per unit (Kshs.) Quantity demanded ...

      

The following information relates to demand and supply schedule for good.
Price per unit (Kshs.)--Quantity demanded---Quantity supplied.
70---------------100-----------------------1000
60-----------500-------------800
50-----------500-------------400
30----------800------------400
20----------900------------300
10---------1000-----------100
i) On the graph paper provided, draw the demand and supply curve on the same graph
and determine equilibrium price and quantity.
ii) What would happen if the price of good X was increased from shs. 50 to shs. 70.
Explain.
iii) What would happen if the price of good X was decreased from shs. 50 to shs. 10.
Explain.

  

Answers


sharon
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E . P = 50 shs.
E . Q = 500
i) From 50 to 70 shs. = at 50 sh: Qd = 500QS = 500
at 70 shs: QD = 100 Q5 - 1000
Excess supply of 900 units
Supply > dd by 900 units
Due to price increase.
ii) From 50 to 10 = at 50 - QD = 500 QS = 500
at 10 sh = Qs = 100 Qd = 1000
shortage of 900 units
demand increase from 500 to 1000 units
excess demand but these is a shortage
due to price decrease.
sharon kalunda answered the question on March 4, 2019 at 10:28


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