Question 1The graphs given below represent the weekly demandfunction and supply function respectively for the stylus pen.Price (RM)Price (in RM)(12.148)Quantity (in thousand units)(19 188)Quantity (in thousand units)Your company is a manufacturer for stylus writing pen fortablet. Your company will not produce any pen if the price perunit is RM112 or lower. For each RM1 decreases in unit price,the quantity demanded increases by 250 units. The maximumproduction capacity for the company is 21,000 units per week.Both the demand and supply functions are assumed to belinear.Let be the quantity of stylus pen in thousand units and be theprice in Ringgits Malaysia (RM), solve the followingquestions by applying linear mathematical model, to thesituation.a) Find the supply equation. Interpret the slope andintercept(s) for the supply equation.b) Find the demand equation. interpret the slope andintercept(s) for the demand equation.c) Find the equilibrium quantity and price (Give youranswer as nearest integer).d) Sketch the graph of both functions using computer-based graphing software. Label the equilibrium point,intercepts and equations.e) Find the quantity status (surplus or shortage) at the priceof RM136 and RM176 by calculation. Use a graph toexplain your answer.

Given the maximum production capacity of 21,000 units per week, we know that your company will only…

Find the supply equation. Interpret the slope and intercept(s) for the supply equation. b) Find the demand equation. interpret the slope and intercept(s) for the demand equation. c) Find the equilibrium quantity and price (Give your answer as nearest integer). d) Sketch the graph of both functions using computer- based graphing software. Label the equilibrium point, intercepts and equations. e) Find the quantity status (surplus or shortage) at the price of RM136 and RM176 by calculation. Use a graph to explain your answer.

Find the supply equation. Interpret the slope and intercept(s) for the supply equation. b) Find the demand equation. interpret the slope and intercept(s) for the demand equation. c) Find the equilibrium quantity and price (Give your answer as nearest integer). d) Sketch the graph of both functions using computer- based graphing software. Label the equilibrium point, intercepts and equations. e) Find the quantity status (surplus or shortage) at the price of RM136 and RM176 by calculation. Use a graph to explain your answer.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 3.6P: (Price Elasticity of Supply) Calculate the price elasticity of supply for each of the following...

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