Demand and Supply Schedules for Papaya Price $ Quantity demanded Quantity Supplied 4 36,000 4,000 8 32,000 8,000 12 28,000 12,000 16 24,000 16,000 20 20,000 20,000 24 16,000 24,000 28 12,000 28,000 32 8,000 32,000 36 4,000 36,000 Identify the equilibrium price and quantity of mangoes.
|
$ |
Quantity demanded |
Quantity Supplied |
|
4 |
36,000 |
4,000 |
|
8 |
32,000 |
8,000 |
|
12 |
28,000 |
12,000 |
|
16 |
24,000 |
16,000 |
|
20 |
20,000 |
20,000 |
|
24 |
16,000 |
24,000 |
|
28 |
12,000 |
28,000 |
|
32 |
8,000 |
32,000 |
|
36 |
4,000 |
36,000 |
- Identify the
equilibrium price and quantity of mangoes. - With the aid of diagrams Distinguish between a movement along the demand curve and a shift of the demand curve.
- Explain the difference between a change in demand and a change in quantity demanded.
- Explain why there will be a shortage of papaya if they are sold at a price of $16.
- Explain why there will be a surplus of papayas if they are sold at a price of $32.
G (i) Calculate the
G (ii) Determine whether the demand for mangoes is elastic, inelastic or unit elastic. Explain your answer.
Hi). Calculate the price elasticity of supply for mangoes when the price changes from$24 to $28
Hii). After computing the price elasticity of supply, sketch the supply curve that represents your answer in F (i).
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