To be submitted on December 7, 2019

I. From 1-16, indicate the effect (increase, decrease or indeterminate) on the equilibrium price and quantity of
each of these changes in demand and/or supply.
Price Quantity
A. Increase in demand, increase in supply (1)_______________ (2)_______________
B. Increase in demand, decrease in supply (3)_______________ (4)_______________
C. Decrease in demand, decrease in supply (5)_______________ (6)_______________
D. Decrease in demand, increase in supply (7)_______________ (8)_______________
E. Increase in demand, supply is constant (9)_______________ (10)_______________
F. Increase in supply, demand is constant (11)_______________ (12)_______________
G. Decrease in demand, supply is constant (13)_______________ (14)_______________
H. Decrease in supply, demand is constant (15)_______________ (16)_______________

II. TRUE OR FALSE

A. Given Qd=50-5P, Qs=-5+6P

_____17. Equilibrium price is P5.00
_____18. Equilibrium quantity is 25 units
_____19. At price P8.00, surplus is 38 units
_____20. At price P3.00, shortage is 3 units.
_____21. At price P6.00, surplus is 11 units.
B. Given Qd=30-3P, Qs=-3+3P
_____22. The equilibrium quantity is 22 units
_____23. The equilibrium price is P5.50
_____24. At price P6.00, surplus is 3 units
_____25. At price P10.00, surplus is 5 units
_____26. At price P=4.00, shortage s 3 units.

III. Supply and demand Problem:

A. Assume that the demand function is equal to: Qd=500-100P, where price range is P1 to P5, derive the
demand schedule. P is the price of the product and Qd is the quantity demanded.

B. Assume that the supply function is equal to: Qs=60+10P, where price range is P1 to P5, derive the supply
schedule. P is the price of the product and Qs is the quantity supplied.

C. Plot the demand and supply schedules. Identify the equilibrium price and quantity.

Price (P) Quantity Demanded (Qd) Quantity Supplied (Qs)

1
2
3
4
5

D. Given the supply equation: Qs=60+10P and demand equation: Qd=500-100P, compute the amount of tax
that will be shouldered by the consumer and the amount of tax that will be shouldered by the seller.

Good and God Bless!!!!