Question

Use the following graph for daily Demand and Supply for Papa's Steakhouse Lunch Special to answer the following questions:

  

Steak Lunch Special 20 18 16 2 14 C 12 10 4 2 0 0 100 200 300 400 500 Quantity

a) At a price of $16, how many lunch specials will Papa's Steakhouse sell?

b) At a price of $8, how many lunch specials will Papa's Steakhouse sell?

c) At a price of $14, there will be a  of lunch specials in the amount of lunches, since quantity  will be greater than quantity .

d) At a price of $6, there will be a  of lunch specials in the amount of lunches, since quantity  will be greater than quantity .

e) What is the market equilibrium price for this market?

f) What will be the quantity sold at the market equilibrium price for this market?

g) If a manfacturing facility with 200 workers was built next to Papa's Steakhouse, the  for lunch specials would most likely shift  causing the equilibrium price to  and the equilibrium quantity to .

h) If Papa's Steakhouse added an additional more efficient grill, the  for lunch specials would most likely shift  causing the equilibrium price to  and the equilibrium quantity to .

Answer 1

Req a: 350 units
Req b: 150 units
Req c: At Price $4, there will be surplus of lunch supplied by 100 units, since the quantity suplied is more than quantity demanded
Rreq d: At pricec $6, there will be shortgae of 300 units, as the quantity demanded is more than quantity supplied
Req e: The Equilibrium price is $ 12
Rreq f: The Equilibrium quantity sold is 250 units
Rreq g: Demand for luch specials would most likely to shift left causing the equilibrium price to decrease and equilibrium demand quantity to decrease
req h: The supply of luch special would mosty likely to shift right causing the equilibrium price to increase and equilibrium demand to increasse.