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Solved: Table 3.8 shows information on the demand and supply for bicycles, where the
Chapter 3, Problem 53(choose chapter or problem)
Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles are measured in thousands.
a. What is the quantity demanded and the quantity supplied at a price of $210?
b. At what price is the quantity supplied equal to 48,000?
c. Graph the demand and supply curve for bicycles. How can you determine the equilibrium price and quantity from the graph? How can you determine the equilibrium price and quantity from the table? What are the equilibrium price and equilibrium quantity?
d. If the price was $120, what would the quantities demanded and supplied be? Would a shortage or surplus exist? If so, how large would the shortage or surplus be?
Questions & Answers
QUESTION:
Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles are measured in thousands.
a. What is the quantity demanded and the quantity supplied at a price of $210?
b. At what price is the quantity supplied equal to 48,000?
c. Graph the demand and supply curve for bicycles. How can you determine the equilibrium price and quantity from the graph? How can you determine the equilibrium price and quantity from the table? What are the equilibrium price and equilibrium quantity?
d. If the price was $120, what would the quantities demanded and supplied be? Would a shortage or surplus exist? If so, how large would the shortage or surplus be?
ANSWER:Problem 53
Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles are measured in thousands.
Price |
Qd (in thousands) |
Qs (in thousands) |
$120 |
50 |
36 |
$150 |
40 |
40 |
$180 |
32 |
48 |
$210 |
28 |
56 |
$240 |
24 |
70 |
a. What is the quantity demanded and the quantity supplied at a price of $210?
b. At what price is the quantity supplied equal to 48,000?
c. Graph the demand and supply curve for bicycles. How can you determine the equilibrium price and quantity from the graph? How can you determine the equilibrium price and quantity from the table? What are the equilibrium price and equilibrium quantity?
d. If the price was $120, what would the quantities demanded and supplied be? Would a shortage or surplus exist? If so, how large would the shortage or surplus be?
Step by Step Solution
Step 1 of 3
Equilibrium refers to a state which brings in maximum surplus or welfare. It is used to indicate the equilibrium price and equilibrium quantity in a market.