Question

1. Which of the below tables is likely a Demand Schedule (Table 1 or Table 2 or both Tables)? Why? 2. Can you identify an equilibrium price and quantity might be from the Tables above? If so, what is would it be? Table 1 Price $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 Quantity 50 40 30 20 10 O Table 2 Price $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 Quantity 0 10 20 30 40 50

Answer 1

1

The table 1 represents here demand schedule because according to law of demand, price and quantity demanded are always inversely related, in ceteris paribus

But in table 2 it shows a direct relationship

Hence the answer is table 1

2

No

we cannot find here the equilibrium price and equilibrium quantity

The reason here is because for finding it we need a supply schedule as well so that the intersection point of demand and supply can be termed as equilibrium

The quantity with respect to it is called equilibrium quantity

The price with respect to it is called equilibrium price