Question

Suppose the demand and supply curves for eggs in the United States are given by the following equations: Qi = 100 – 20P Q. = 10 + 40P where Qd = millions of dozens of eggs Americans would like to buy each year; Q = millions of dozens of eggs U.S. farms would like to sell each year; and P = price per dozen eggs. a. Fill in the following table: Price (Per Dozen) Quantity Demanded (Q) Quantity Supplied (2.) $ 50 $ 1.00 $ 1.50 $ 2.00 $ 2.50 b. Use the information in the table to find the equilibrium price and quantity. c. Graph the demand and supply curves and identify the equilibrium price and quantity.

Answer 1

Qs = 10 + 40p a. Qd = 100 - 20P Quantity Price (per demanded(Q dozen) d) $0.50 90 (100-20*0.5) $1.00 80 (100-20*1) $1.50 70 (100-20*1.5) $2.00 60 (100-20*2) $2.50 50 (100-20*2.5) Quanity supplied(Qs) 30 (10+40*0.5) 50 (10+40*1) 70 (10+40*1.5) 90 (10+40*2) 110 (10+40*2.5) Equilibrium quantity is 70 when demand is equal to supply and price is $1.50 Demand and supply graph Demand and Supply $0.00 $0.50 $1.00 $1.50 Price $2.00 $2.50 $3.00 Demand Supply

*Point 'e' in the graph is equilibrium.

*If you have any doubts feel free to ask in the comment section. Please give your valuable feedback.