Q4: Following is the monthly demand and supply schedule for Ice-cream; graph the implied demand and supply curves and show the equilibrium point. Show on a separate diagram what happens to the market for Ice-cream if hot weather increases the demand for ice cream and an increase in the price of sugar reduces the supply of ice-cream. (4) Price ($) 10 15 20 25 30 35 Demand 16 13 10 7 4 Supply 10 13

Q4: Following is the monthly demand and supply schedule for Ice-cream; graph the implied demand and supply curves and show the equilibrium point. Show on a separate diagram what happens to the market for Ice-cream if hot weather increases the demand for ice cream and an increase in the price of sugar reduces the supply of ice-cream. (4) Price ($) 10 15 20 25 30 35 Demand 16 13 10 7 4 Supply 10 13

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 10P

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The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz The equilibrium prices and quantities of all three goods are: Px= 78.72 Qx= 68.72 Py= 23.66 Qy= 50.98 Pz= 60.42 Qz= 90.84 The government decides to: Give a 10% subsidy on good Z. Analyse the impact on equilibrium prices and quantities.
The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz The equilibrium prices and quantities of all three goods are: Px= 78.72 Qx= 68.72 Py= 23.66 Qy= 50.98 Pz= 60.42 Qz= 90.84 The government decides to: impose a 25% Tax on X impose a 5 Rs/unit Tax on Y When these above policies are jointly implemented. Analyse the impact on equilibrium prices and quantities.
The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz The equilibrium prices and quantities of all three goods are: Px= 78.72 Qx= 68.72 Py= 23.66 Qy= 50.98 Pz= 60.42 Qz= 90.84 The government decides to: impose a 25% Tax on X impose a 5 Rs/unit Tax on Y give a 10% subsidy on good Z. When the above policies are jointly implemented. Analyse the impact on equilibrium prices and quantities.