Answered step-by-stepALL THE INFORMATION IS IN HERE THER ARE ONLY TWO TABLES ENGLISH...
ALL THE INFORMATION IS IN HERE THER ARE ONLY TWO TABLES
ENGLISH
Problem 1. Market Equilibrium
The following data reflects what happens in the pizza market of a store per week.
| Price ($) | Quantity offered | quantity demanded |
| 12 | 100 | 300 |
| 14 | 200 | 200 |
| 16 | 300 | 100 |
1. Plot the graph of the pizza market
2. Describe the behavior of the pizza market if the price of the product is $12 per pizza and then when the price of the product is $16 per pizza.
3. Indicate on the graph where an excess of products is generated and how the price is adjusted to achieve equilibrium.
4. Indicate on the graph where a shortage of products is generated and how the price is adjusted to achieve equilibrium.
5. Because the equilibrium price is the best possible deal for both buyers and sellers?
Problem 2. Change in Demand and Supply
The following table presents the supply and demand plans for French fries by week.
Price (cents / bag) | Quantity demanded (thousands) | Quantity offered (thousands) |
| 50 | 160 | 130 |
| 60 | 150 | 140 |
| 70 | 140 | 150 |
| 80 | 130 | 160 |
| 90 | 120 | 170 |
| 100 | 110 | 180 |
1. Sketch a graph of the market for potato chips and determine the equilibrium price and quantity.
2. Describe the market situation for potato chips and explain how the price adjusts if the product costs 60 cents a bag.
The following questions are related to changes in demand, supply, and both behaviors
Suppose a new dressing increases the number of potato chips demanded by 30,000 bags per week at each price.
1. What will be the new break-even point, that is, the price and quantity of French fries with the new data? To answer the question you must establish a new supply column, make a graph of it, and explain any movements or changes in order to respond to the question.
Suppose a virus destroys potato chip crops and the quantity supplied decreases by 40,000 bags per week at each price.
1. What will be the new break-even point, that is, the price and quantity of French fries with the new data? To answer the question you must establish a new supply column, make a graph of it, and explain any movements or changes in order to respond to the question.
Suppose a virus destroys potato chip crops and the quantity supplied decreases by 40,000 bags per week at each price.
1. What will be the new break-even point, that is, the price and quantity of French fries with the new data? To answer the question you must establish a new supply column, make a graph of it, and explain any movements or changes in order to respond to the question.
Draw the graph and explain.
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