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  • Consider The Following Demand Schedule For Surgical Masks: Point Price Quantity

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    Cendimee Posadas
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    This document contains information about the demand and supply of surgical masks: 1. It provides a demand schedule and graphs the demand curve, showing it is inelastic from points A to C and elastic from points E to G. 2. It also provides a supply schedule and graphs the supply curve, showing the supply is inelastic from points A to C and from points E to G. 3. It graphs the market equilibrium where demand and supply intersect and explains how a rightward shift in supply decreases both price and quantity, resulting in a surplus.

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    Economics activity

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    This document contains information about the demand and supply of surgical masks: 1. It provides a demand schedule and graphs the demand curve, showing it is inelastic from points A to C and elastic from points E to G. 2. It also provides a supply schedule and graphs the supply curve, showing the supply is inelastic from points A to C and from points E to G. 3. It graphs the market equilibrium where demand and supply intersect and explains how a rightward shift in supply decreases both price and quantity, resulting in a surplus.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    16 views6 pages

    Consider The Following Demand Schedule For Surgical Masks: Point Price Quantity

    Uploaded by

    Cendimee Posadas
    This document contains information about the demand and supply of surgical masks: 1. It provides a demand schedule and graphs the demand curve, showing it is inelastic from points A to C and elastic from points E to G. 2. It also provides a supply schedule and graphs the supply curve, showing the supply is inelastic from points A to C and from points E to G. 3. It graphs the market equilibrium where demand and supply intersect and explains how a rightward shift in supply decreases both price and quantity, resulting in a surplus.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 6

    Cendimee P.

    Posadas
    BUSECO 1-C
    June 19, 2020

    Consider the following demand schedule for Surgical Masks


    Point Price Quantity
    A 10 150
    B 20 130
    C 30 110
    D 40 100
    E 50 90
    F 60 50
    G 70 40

    a.
    Demand Curve

    Demand Curve
    80

    70

    60

    50

    40

    30

    20

    10

    0
    40 50 90 100 110 130 150

    b.
    demand shift
    80

    70

    60

    50

    40

    30

    20

    10

    0
    40 50 90 100 110 130 150

    supply shift
    80

    70

    60

    50

    40

    30

    20

    10

    0
    40 50 90 100 110 130 150

    c. PED(A to C) = 110-150
    (110+150)/2 X 100 =/0.31/ =0.31 INELASTIC
    30-10
    (30+10)/2 X 100

    The price elasticity of the demand of point a to c is inelastic because it is less than one
    PED(E TO G) = 40-90
    (40+90)/2 X 100 = /2.31/ =2.31 ELASTIC
    70-50
    (70+50)/2 X 100

    The price elasticity of demand from point e to g is elastic because it is greater than 1

    2. Consider the following Supply Curve for Face Masks


    Point Price Quantity
    A 70 160
    B 60 140
    C 50 120
    D 40 100
    E 30 80
    F 20 60
    G 10 40

    A.

    supply
    80

    70

    60

    50

    40

    30

    20

    10

    0
    40 60 80 100 120 140 160

    B.
    supply shift
    80

    70

    60

    50

    40

    30

    20

    10

    0
    40 60 80 100 120 140 160

    C. PES (A TO C) = 0.86 the price elasticity of the supply from a to c is INELASTIC


    PES (E TO G) = 0.67 the price elasticity of the supply from e to g is INELASTIC

    3. COMBINATION

    A.

    combination
    80

    70

    60

    50

    40
    <- EQUILIBRIUM
    30

    20

    10

    0
    40 60 80 100 120 140 160

    B.
    demand shift
    80

    70

    60

    50

    40

    30

    20

    10

    0
    40 60 80 100 120 140 160

    This means that or the shift that the price decreases as well as the buyer’s
    demand. It also gives the concept or change that the quantity decreases. The equilibrium before meet at
    35 pesos and 100 quantities, now the equilibrium lies at 30 pesos and somewhere between 80 and 100
    which also indicates surplus since demand decreased.

    C (explanation/interpretation below)

    supply shift
    80

    70

    60

    50

    40

    30

    20

    10

    0
    40 60 80 100 120 140 160
    I put the RIGHT shift, in the right shift which is the red line as you can see
    prices went down per quantity. Example is that 60 pcs or quantity that has demanded the price of 10
    pesos, their equilibrium shifted to 100 quantities for 30 pesos also indicates surplus.

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