Question

Exhibit 7. Suppose that in a recent market period, the following relationship existed between the price of tablet devices and the quantity supplied and quantity demanded. Price 5330 $340 $350 S360 Quantity Demanded 100 million 90 million 80 milliorn 70 million Quantity Supplied 40 million 60 million 80 million 100 million

Answer 1

29.

Price	Quantity Demanded	Quantity Supplied
$330	100 mn	40 mn
$340	90 mn	60 mn
$350	80 mn	80 mn
$360	70 mn	100 mn
$370	60 mn	120 mn

The point of equillibrium is where the demand matches the supply. Here at price $350, demand matches the supply and thus is the point of equillibrium.

30. At a price of $340, There is a demand of 90 million and the supply of 60 million. So there is a shortage as the Quantity demanded is more than the Quantity supplied. There is a shortage of 90 million - 60 million = 30 million.

31. The New Demand Curve

Price	Quantity Demanded	Quantity Supplied
$330	130 mn	40 mn
$340	120 mn	60 mn
$350	110 mn	80 mn
$360	100 mn	100 mn
$370	90 mn	120 mn

There is an increase in demand. The new equillibrium quantity is 100 million and the new equillibrium price is $360.

As the income of the population increases, there is an increase in demand.

As there is an increase in the advertising expenditure by the company, the demand of the tablet increases.