Question: Exercise 2: Table given below shows the supply and demand schedules for used copies of the seventh edition of Economics Textbook. Go through the table

Exercise 2: Table given below shows the supply and demand schedules for used copies of the seventh edition of Economics Textbook. Go through the table and answer the following questions. Price of books (OMR) Quantity of books demanded Quantity of books supplied 7 40 2 8 35 $ 10 25 8 14 20 10 15 12 12 18 10 20 20 8 25 30 5 35 31 2 40 a) Draw the lines of supply and demand curves in a graph b) Show the equilibrium point in the graph c) How much is the equilibrium price? d) How much is the equilibrium quantity demanded and supplied? e) How many books demanded when the price is '10"? 1) How many books supplied when the price is "20"? g) If the price increase from 10 to 20, what happens to total revenue? Discuss h) Show surplus and shortage in the graph and discuss

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

According to the Bureau of Transportation Statistics, due to an increase in demand, the average domestic airline fare increased from $367.17 in the fourth quarter of 2005 to $381.99 in the first...

6. The accompanying table shows the supply and demand schedules for used copies of the third edition of this textbook. The supply schedule is derived from offers at Amazon.com. The demand schedule is...

The accompanying table shows the supply and demand schedules for used copies of the fourth edition of this textbook. The supply schedule is derived from offers at Amazon.com. The demand schedule is...

Week 2: Understanding and Exploring Assumptions You will submit one Word document, including your SPSS output. 1. Why do we care whether the assumptions required for statistical tests are met? (Tip:...

1. Problems and Applications Q1 Ana buys an iPhone for $150 and gets a consumer surplus of $200. Her willingness to pay for an iPhone is . If she had bought the iPhone on sale for $100, her consumer...

Question 1- This question has multiple answers: You just took Uber from home to campus for the first time and were willing to pay $13 for the trip. It was so much easier than driving yourself that...

The requirements are in world file. The pdf file includes the case. Only one-page write. Answer following questions and write one page (double space) What are the challenges of exiting private equity...

Question 1 (4 points) Listen (Figure: Shifts in Demand and Supply III) Use Figure: Shifts in Demand and Supply III. The figure shows how supply and demand might shift in response to specific events....

Effect of Doubtful Accounts on Net Income During its first year of operations, Fisher Plumbing Supply Co. had sales of $610,000, wrote off $9,800 of accounts as uncollectible using the direct...

Describe what you feel would be your greatest challenges in managing a team that was not collocated.

Listen If you have probably reached the upper limit of debt obligations, your debt - to - equity ratio is about: 0 . 2 5 1 . 0 . 0 . 5 . 0 . 2 .

1 Learning from some of the measures taken by Eskom, AECI and Germiston City Council, what could a foreign company like Colgate Palmolive do to contribute to the development of human potential within...

Achievementascription. Quite often more traditional societies accord status according to ascription. Again, this may influence recruitment and promotion policies that may be at variance with...

Indian managers at both middle and senior levels in organizations profess a belief in group-based, participative decision making, but have little faith in the capacity of workers for taking...