The table below shows the monthly demand and supply of gallons of Ghana Nuts Oil at different prices. Use the information in the table to answer the questions that follows: Price per gallonQuantity of gallons demandedQuantity of gallons Supplied20500010002540002000303000300035200040004010005000 Use the information in the table to sketch the demand and supply curve on the same axis. (NOTE: Graph sheet is not needed).What is the equilibrium price and quantity?Which of the prices would cause shortages? Calculate the shortages that may occur at those prices.Suppose the Government of Ghana imposes a minimum price legislation which led to surpluses in the oil market, discuss two ways that can be use to address or mitigate the surpluses in the market. Suppose the price of Ghana Nut Oil increase from 20 to 25, calculate the price elasticity of demand and supply of Ghana Nut Oil.Demand and Supply which one is more is elastic when price changed from 20 to 25? Explain your answer.

Answered: Image /qna-images/answer/c331ca2b-e202-4bfa-bad8-0993fa478fa6.jpg

Answered: The table below shows the monthly…

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 2TY

See similar textbooks

Related questions

Question

100%

The table below shows the monthly demand and supply of gallons of Ghana Nuts Oil at different prices. Use the information in the table to answer the questions that follows:

Price per gallon	Quantity of gallons demanded	Quantity of gallons Supplied
20	5000	1000
25	4000	2000
30	3000	3000
35	2000	4000
40	1000	5000

Use the information in the table to sketch the demand and supply curve on the same axis. (NOTE: Graph sheet is not needed).
What is the equilibrium price and quantity?
Which of the prices would cause shortages? Calculate the shortages that may occur at those prices.
Suppose the Government of Ghana imposes a minimum price legislation which led to surpluses in the oil market, discuss two ways that can be use to address or mitigate the surpluses in the market.
Suppose the price of Ghana Nut Oil increase from 20 to 25, calculate the price elasticity of demand and supply of Ghana Nut Oil.
Demand and Supply which one is more is elastic when price changed from 20 to 25? Explain your answer.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions