5. (11 points) Examine the demand and supply schedules for folding bikes Price (in Php) 10,000...

 

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5. (11 points) Examine the demand and supply schedules for folding bikes Price (in Php) 10,000 8,750 7,500 6,250 5,000 Quantity Demanded 0₂ 45 55 65 75 85 D₂ 20 30 40 50 60 Quantity Supplied 95 80 65 50 35 $₂ 70 55 40 25 10 a. (3 points) Draw a graph showing the original demand and supply curves (D, and So). for folding bikes. Find the equilibrium price and quantity. b. (4 points) Due to quality-related issues, the demand for folding bikes changes from Do to D₁. Together with the graph in a, draw the new demand curve. Find the new equilibrium price and quantity associated with D, and So. Compare the equilibrium values with those in the original. c. (4 points) Suppose there is a rise in wages. The supply of folding bikes changes from So to S₁. Together with the graphs in a and b, draw the new supply curve. Find the new equilibrium price and quantity associated with D, and 5₁. Compare the equilibrium values with those in the original and part b. Note: Final output for #5 should show only one graph. But ensure that the shifts are seen properly. 5. (11 points) Examine the demand and supply schedules for folding bikes Price (in Php) 10,000 8,750 7,500 6,250 5,000 Quantity Demanded 0₂ 45 55 65 75 85 D₂ 20 30 40 50 60 Quantity Supplied 95 80 65 50 35 $₂ 70 55 40 25 10 a. (3 points) Draw a graph showing the original demand and supply curves (D, and So). for folding bikes. Find the equilibrium price and quantity. b. (4 points) Due to quality-related issues, the demand for folding bikes changes from Do to D₁. Together with the graph in a, draw the new demand curve. Find the new equilibrium price and quantity associated with D, and So. Compare the equilibrium values with those in the original. c. (4 points) Suppose there is a rise in wages. The supply of folding bikes changes from So to S₁. Together with the graphs in a and b, draw the new supply curve. Find the new equilibrium price and quantity associated with D, and 5₁. Compare the equilibrium values with those in the original and part b. Note: Final output for #5 should show only one graph. But ensure that the shifts are seen properly.

Answer rating: 100% (QA)

a To find the equilibrium price and quantity for the original demand D and supply S curves we can pl... View the full answer