SUBMITTED TO : DEAN ROSAS

JAYSON SATARAIN 2021304560 BAC_HRDM112

TASK 3 AND TASK 4 = QUIZZES

1.wHAT WILL HAPPEN TO MARKET EQUILIBRIUM IF DEMAND FUNCTION IS

QD =100,000 – 10,000 p DUE TO DECREASE IN NUMBER OF BUYERS

WHILE SUPPLY FUNCTIOM REMAINS CONSTANT

QS = - 20,000 + 30,000 P.

SOLVE THE NEW EQUILIBRIUM PRICE AND QUANTITY USING MATHEMATICAL , TABULAR AND
GRAPHICAL ILLUSTRATION.

ANSWERS:

Market equilibrium

Where Qd = Qs

If Qd = 100,000 -10,000 P and Qs = - 20,000 + 30,000 P

Find Pe and Qe

1.) First Method Mathematical

Qd = Qs

100,000 – 10,000 P = - 20,000 + 30,000 P

-10,000 P -30,000 P = -100,000 -20,000

P = - 120,000 / -40,000

Pe = P 3.00

Qe? Qd = 100,000 – 10,000 (3) = 70,000 or Qd =a -bP

QS = - 20,000 + 30,000 (3) = 70,000 or Qs = - c +dP

 2.TABULAR

QUANTITY PRICE QUANTITY SHORTAGE SURPLUS

DEMANDED SUPPLIED
90,000 1 10,000 shortage
70,000 3 70,000 equilibrium equilibrium
50,000 5 130,000 surplus
30,000 7 190,000 surplus
10,000 9 250,000 surplus
(10,000) 11 310000 surplus

GRAPHICAL ILLUSTRATION

11

0
Q (10 K) 10 K 30 K 50 K 70 K 90 K 110 K 130 K 150 K 190 K 220 K 250 K 270 K 290 K 310 K

2.SOLve fo the TOTAL REVENUE

Price x Quantity = 3 x 70,000

TOTAL REVENUE = 210,000

 3.fROM THE NEW MARKET SCHEDULE SOLVE THE FOLLOWING ELASTICITIES

1.PRICE ELASTICITY OF DEMAND BETWEEN PRICE 2 AND PRICE 4

2.PRICE ELASTICITY OF SUPPLY BETWEEN PRICE 4 AND PRICE 6

Elasticity of Demand

Qd2-Qd1 /Qdi+ Qd2 /2 Qs2-Qs1 /Qs1+Qs2 / 2

P1+P2 /2 / P2-P1 P1+P2 /2 / P2-P1

Price elasticity of demand

Coefficient = - (negative ) elastic = greater than 1, inelastic less than 1 , unitary =1

Price elasticity of supply

Coefficient = + (positive ) elastic greater than 1, inelastic =less than 1 and unitary = 1.

ELASTICITY OF DEMAND
If Qd = 100,000 -10,000 P

-10,000-100,000/100,000+10,000/2 -0.5
= = -0.33333 or -33.33% inelastic
2+4/2/4-2 1.5

ELASTICITY OF SUPPLY

Qs = - 20,000 + 30,000 P

30,000-(-20,000) / -20,000+30,000 /2 2.5

= 1 unitary
4+6 /2 / 6-4 2.5