Practice on the laws of demand and supply
Answers are for parents and teachers.
1
If qD = 150 – 3p and qS = 2p + 50, find the equilibrium price and quantity (p in thousand so‘m).
150 – 3p = 2p + 50, 100 = 5p, p = 20; q = 150 – 60 = 90 (check: 2 · 20 + 50 = 90).
2
In this problem how many thousand so‘m is the equilibrium price p?
20
3
In this problem how many units is the equilibrium quantity q?
90
4
If p = 10 is fixed, how many units is the shortage? (qD = 150 – 3p, qS = 2p + 50)
50
5
Which of the table, graph and formula methods suits you best and why?
Free answer: for example, the table is simple, the graph is visual, and the formula is quick and exact.