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Homework answers / question archive / Demand and Supply Related Question The following Table depicts the apple market in Keto city
Demand and Supply Related Question The following Table depicts the apple market in Keto city. Use this table to answer following questions Table: Demand for and Supply of apple in a week 4 8 9 15 Price par kilogram 2 10 Quantity demanded thousand) 25 20 15 10 Quantity supplied thousand 12 18 22 a. I per kilogram apple as $2. la there is a shortage or surplus in the apple market? How does the price adjust? bet per kilogram apple is $10, is there is a shortage or surplus in the apple market? How does the price adjust c. Explain how the equilibrium price of apple market will be determined. What are the equilibrium price and quantity traded? d Assume that apple and pear are substitute to each other, the price of pear drops, what happens to the demand function or the supply function of the apple market? Explain what happens to the equilibrium price and quantityexchanged o. It huge new immigrants move to Kello city due to government policy change what happens to the demand function or the supply function of apple marit? Explain what happens to the equilibrium price and quantity exchanged Suppose that goverment introduces a nice toor at 38 per llogram, how much will be the total comand for and supply at apple What will be the total quantity of shortage surplus ot apple due to price floor
Demand and Supply Related Question The following Table depicts the apple marketin kello city. Use this table to ans following questions Table Demand for and Supply ot pole in a week Price per kilogram 6 10 Quantity demanded thousand) 25 20 15 10 Quantity supplied (thousand) 12 15 18 21 all per kilogram apples 52, is there is a shortage or surplus in the apple market? How does the price adjust? bit per kilogram apple is $10, is there is a shortage or surplus in the apple market? How does the price adjust? c. Explain how the equilibrium price of apple market will be determined. What are the equilibrium price and quantity traded? Assume that apple and pear are substitute to each other. If the price of ear drops, what happens to the demand function or the supply function of the apple market? Explain what happens to the equilibrium price and quantity exchanged. e. It hupe new immigrants move to Kelio city due to government policy change, what happens to the demand function or the supply function of apple market? Explain what happens to the equilibrium price and quantity exchanged. Suppose that government introduces a price floor at $8 per kilogram how much will be the total demand for and supply at apple? What will be the total quantity of shortage/surplus of apple due to price floor?
(a) At P =$2, quantity demanded is 25000 apples and quantity supplied is 9000 apples which means a shortage of 25 - 9 = 16000 apples. This shortage pushes the price up bringing in more supplies at higher prices.
(b)At P =$10, quantity demanded is 5000 apples and quantity supplied is 21000 apples which means a surplus of 21 - 5 = 16000 apples. This surplus pulls the price down bringing in more demand at lower prices.
(c) Equilibrium price is the point where quantity supplied equals quantity demanded. In the given case the Equilibrium price is $6, where quantity demanded and quantity supplied both is 15000 apples.
(d)Apple demand falls and the demand curve shifts to the left (apple supply remaining
unchanged in the short run). This pulls the equilibrium quantity and price down.
(e)Apple demand increase and the demand curve shifts to the right (apple supply remaining unchanged in the short run). This pushes the equilibrium quantity and price up.
(f)At P = $8, quantity supplied is 18000 and quantity demanded is 10,000 leding to a surplus of 8000.
