Economics PROBLEM SET 2 Supply and Demand DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2 Price Qd Qs Qd + 200 (at each price) Qs + 200 (at each price) $50 200 800 $45 300 700 $40 400 600 $35 500 500 $30 600 400 $25 700 300 $20 800 200 Please complete demand/supply schedule 2 i.e if Qd and Qs from schedule 1 are increased by 200 units. Determine equilibrium Price & Quantity in Schedule 1. Determine equilibrium Price & Quantity in Schedule 2. Assume a price floor of $45 in Schedule 1; what is the result? Assume a price ceiling of $25 in Schedule 1; what is the result? In both cases what is the implication for resource allocation? Distinguish between a change in demand/supply and change in quantity demanded/supplied. In Schedule 2 state four (4) reasons that would shift the demand curve. What are five (5) reasons that would shift the supply curve?

Principles of Economics 2e

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ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

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DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2

Price	Qd	Qs	Qd + 200 (at each price)	Qs + 200 (at each price)
$50	200	800
$45	300	700
$40	400	600
$35	500	500
$30	600	400
$25	700	300
$20	800	200

Please complete demand/supply schedule 2 i.e if Qd and Qs from schedule 1 are increased by 200 units.

Determine equilibrium Price & Quantity in Schedule 1.

Determine equilibrium Price & Quantity in Schedule 2.

Assume a price floor of $45 in Schedule 1; what is the result?

Assume a price ceiling of $25 in Schedule 1; what is the result?

In both cases what is the implication for resource allocation?

Distinguish between a change in demand/supply and change in quantity demanded/supplied.

In Schedule 2 state four (4) reasons that would shift the demand curve.

What are five (5) reasons that would shift the supply curve?

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