QUESTION 1 Assume that the following data shows the market demand and supply for hand sanitizer...

 

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QUESTION 1 Assume that the following data shows the market demand and supply for hand sanitizer in the local supermarket. Price (RM) 2 3 4 5 6 7 8 i. ii. Quantity Demanded (per day) 75 65 55 45 35 25 15 RM4.00 to RM5.00 RM5.00 to RM6.00 Quantity Supplied (per day) 10 20 a) What is the equilibrium price of hand sanitizer in the local supermarket? Use diagram to explain (use graph paper). 30 40 b) Use the mid-point method to calculate the price elasticity of demand over the price range of: 50 60 70 e) Discuss two (2) determinants of elasticity of demand. c) After comparing your answers from parts (b) i. and ii, what can you conclude about the price elasticity of demand as the demand curve move upward along the demand curve? d) Assume that the vaccine for Covid-19 has successfully decreased the probability of being infected by the virus. How will the market for hand sanitizer will be affected? Show your answer in the graph from a). Are there any changes in equilibrium price and output? QUESTION 1 Assume that the following data shows the market demand and supply for hand sanitizer in the local supermarket. Price (RM) 2 3 4 5 6 7 8 i. ii. Quantity Demanded (per day) 75 65 55 45 35 25 15 RM4.00 to RM5.00 RM5.00 to RM6.00 Quantity Supplied (per day) 10 20 a) What is the equilibrium price of hand sanitizer in the local supermarket? Use diagram to explain (use graph paper). 30 40 b) Use the mid-point method to calculate the price elasticity of demand over the price range of: 50 60 70 e) Discuss two (2) determinants of elasticity of demand. c) After comparing your answers from parts (b) i. and ii, what can you conclude about the price elasticity of demand as the demand curve move upward along the demand curve? d) Assume that the vaccine for Covid-19 has successfully decreased the probability of being infected by the virus. How will the market for hand sanitizer will be affected? Show your answer in the graph from a). Are there any changes in equilibrium price and output?

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Part a Price in hundred 8 7 6 5 3 2 Equi... View the full answer