Question

b. What is the equilibrium price in the boomerang market? How many (O) will be sold at price? (4 marks) Dr. Ab a The c. If boomerangs become more popular and the public demands 4 more boomerangsat all possible prices, what will be the new equilibrium price. Draw the change in demand on the graph above. (2 marks) b. P doul 2 What is the difference between a demand schedule and a demand curve? (2 marks) 3. What is the law of demand? (4 marks) 4. For each problem, answer the question then illustrate the change that will occur on the graph below. First draw the original demand line and label it "dl". Then draw the new demand line ad label it "d2"

Answer 1

Question number 2. A demand schedule is a table that represents the relationship between the quantity of a good demanded and the price per unit charged. This tabulated representation of the demand function is then drawn on a graph and this is known as demand curve. So basically demand curve is a graphical representation of the tabular form of demand function which is called demand schedule.

Question number 3. Law of demand asserts that there tends to be an inverse relationship between the price of a good and its quantity demanded. for a price decline there is an increase in the quantity of a good demanded and for a price increase, there is a decline in the quantity of a good demanded.

Law of demand operates along the original demand curve which is shown by a movement up or down along the curve.