Answer Happy

1. Use the table to answer the questions below Price Per Game Buyer 1 0 $20 $18 $16 $14 $12 $10 8 $8 11 a. Do each of the 4 buyers above follow the law of demand? 1 2 Quantity Demanded Buyer 2 Buyer 3 Buyer 4 0 3 4 5 6 1 a. What is the equilibrium price? Equilibrium price = Equilibrium quantity = 2 4 6 913579113 29236815 b. What is the total market quantity demand at a price of $20? $18? at $16? at $14 at $12? $10? and at $8? 0 Price $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 10 2. The following table shows the market demand and supply schedules for cups of coffee at the Campus Coffee Shop. Demand 8,000 7,000 6,000 5,000 b. If the price of coffee is $0.75, what is the quantity demanded? the quantity supplied? By how much do they differ? this a surplus or a shortage? the price of a cup of coffee? Supply 3,500 4,000 4,500 5,000 5,500 6,000 4,000 3,000 2,000 1,000 and equilibrium quantity? at 6,500 7,000 at what is Is What would you expect to happen to 3. Given the following equations, what is the equilibrium price and quantity in this market? Qd = 128-9P Qs = 7P-32

4. Use the graph below to answer the questions. Price (dollars) W Price (dollars) x a. A change in quantity demanded is represented by a change from equilibrium point X to equilibrium point b. A change in demand is represented by a change from equilibrium point V to 0 S₁ S₂ equilibrium point, c. A change in quantity supplied is represented by a change from equilibrium point W to equilibrium point d. A change in supply is represented by a change from equilibrium point Z to equilibrium point 5. Using the graph below, answer the following questions. Quantity X 5 10 15 Quantity a. What condition is necessary for a price floor to be effective? b. If a price floor is set at $2.00 what impact will it have on the market? (be specific) c. If a price floor is set at $5.00, what impact will it have on the market? (be specific) 20