Question

Use the demand and supply schedule below to answer the following questions.

price of garlic per pound 10 30 50 70 90

QD of garlic 100 80- 60 40 20

QS of garlic 20 40 60 80 100

a. Graph the demand for garlic and the supply of garlic, and then indicate equilibrium in the garlic market.

Instructions: Use the tools provided 'Supply' and 'Demand' to plot the supply and demand curves for this market (plot 5 points for each curve). Use the tool provided 'Equilibrium' to label the market equilibrium.

b. If the number of buyers increases, the   (Click to select)   demand for garlic   quantity demanded of garlic  will   (Click to select)   increase   decrease  . This will cause the equilibrium price to   (Click to select)   decrease   be indeterminate   increase  and the equilibrium quantity to   (Click to select)   be indeterminate   decrease   increase  .

rev: 07_08_2017_QC_CS-92751

Answer 1

First plug in the quantity demanded and quantity supplied at different prices, that is create the Demand and supply scheduled. Then plot the demand and supply curve as shown in the picture attached below

B. When number of buyers increases the demand of garlic will increase.

Thus, the demand curve will shift to it's right.

This will cause the equilibrium price to increase and the equilibrium quantity to increase.

Please refer the attached picture

Please let me know if you have any query. Kindly contact through comment will be obliged to you for your generous support.