Question

Question #2 Consider the general demand function and the supply function for Dates (Tamr) in (tons) below: la = 60 - 2P + 0.01M+ 0.5P, +6P Is = 600 + 10P Id=quantity demanded of dates in ton. M=income P=price of dates in Saudi Riyal Pr=price of related good(chocolates) Pe= expected price of dates. Is=quantity supplied of dates 1- Define the relationship between the price of dates and quantity demanded as well as the price and the quantity supplied? Is it consistent with the law of demand and sunn 2 very

Answer 1

Question 2 Considering the queral dewal fruction and the Supply for ction for Dabs (Tan ) in (tous) below! Qd = 60-2P toolmtois Potope . Qs = 6ootlop. Qd = Quark tj demade of dakes in ton. m= income P= Puie of dates in Sudi Riyal Pr=.price of related goods (chocolats) Pe= expected pure of deatis. Ps = quantity supplied of dates. 12 . Now.. Qd = 60-2p toolm+ 0.5Po tope =) 2p= 60+0.0lm toispotope-Qd . ; P = 30 +0.005m + 0,25 Pr 3 pe- 0.5Qd Te is the relationship between puice of dats and quantity demanded Now ae = dad = -2 DP The meas that as dad 20 hen as puce of dats inneass, . quantity demanded of dates fall. Hince it į consistent with the of demand. a law Scanned with CamScanner

supply Now, Qs = 600+2P =) Qs - 600 = 2p. . O.S QS – 300 =p a) p= 0.5Q5 -3.00 The rola i the a relationship betwan quantity supplied. Now' das .=2 Now as Ro das o herce as puce of dako inneasn, Quantity Supplied of dates increase. Huce eit is consistent with the law of supply . 22 Now, Qd = 60-2P +0.01 m +0.5 Potope Now in cone elasticity of demand for dats Em = Jadon and Hue aad 0.01 Hace gade. =(0.01 m ). As encome myo and quantity demanded Qd yo. Hace Emo and positive in come elasticity of denad hears, as income increans, demand for det dates will increase. Hince dates are normal goods, 3 Hue the detruint detaminants of a demad ů the general function about me il Price of the goods (P) (i) income level of consueens (M) (in Pice of related goods (Pr). a consmeis enfertation about future Puces of dates am Scanned with CamScanner

4 Now, - Qd = 60-ap+ 0.01m tos po tole demand between Now dates cross-price elasticity of and chocolates will be Ec= sado por la Now Qd = 60-QP +0.olm tos Po tope =) 20 = 0.5 or Ec= o.s ( fr ). here as Bryo and Qd>o , hence the cross puce elasticity of daard betwan dates and related product is positive. which means that increase in the place of related goods will increase the demand for dates. Hace, dats and related Product (chocolates) are I substitutas Change 5 As puce ots And Quantity demanded are detnmind on the basis of the model , hence n ü them will cause a movement along the supply and demand care. Hence increase in quantity demanded by 20 tons will cause an at word movement along the demand and supply and will raise the equiliburry price of enve and radate ned with CamScanner