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  • Chapter 2 - Case Problem Set A: Managerial Economics in A Global Economy, 7 Edition

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    1. The schedule provided is a supply function because as price increases, quantity supplied also increases. A demand function would show quantity demanded decreasing as price increases. 2. The market equilibrium price is 30, as this is where quantity demanded equals quantity supplied. If the price were set to 40, there would be a surplus of 600 units. If the price were set to 20, there would be a shortage of 200 units.

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    1. The schedule provided is a supply function because as price increases, quantity supplied also increases. A demand function would show quantity demanded decreasing as price increases. 2. The market equilibrium price is 30, as this is where quantity demanded equals quantity supplied. If the price were set to 40, there would be a surplus of 600 units. If the price were set to 20, there would be a shortage of 200 units.

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    11 views1 page

    Chapter 2 - Case Problem Set A: Managerial Economics in A Global Economy, 7 Edition

    Uploaded by

    Ashirbad Nayak
    1. The schedule provided is a supply function because as price increases, quantity supplied also increases. A demand function would show quantity demanded decreasing as price increases. 2. The market equilibrium price is 30, as this is where quantity demanded equals quantity supplied. If the price were set to 40, there would be a surplus of 600 units. If the price were set to 20, there would be a shortage of 200 units.

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    Chapter 2 – Case Problem Set A

    1. Is the following schedule that of a demand or supply function and why?

    Price Quantity

    2 20
    3 30
    4 50
    5 90

    2. Use the information in the table below to answer the following questions:

    Price Quantity Demanded Quantity Supplied

    10 1000 0
    20 800 200
    30 600 600
    40 400 1000
    50 200 1400

    a) What is the market equilibrium price in this case?

    b) What would happen in this market if the price were set to 40?

    c) What would happen in this market if the price were set to 20?

    Managerial Economics in a Global Economy, 7th Edition

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