PRELIM EXAMINATION

BASIC MICROECONOMICS

PROF.MARIA VICTORIA U. ROSAS,BA,MA,MM,LPT,CMC,CMC,RBE,DBE,PHd

“HONESTY IS THE BEST POLICY “
GOD IS WATCHING …

I.Answer the following questions:

Suppose the price of basketball tickets at your college is determined by market from the given
demand and supply schedules ;
Quantity Demanded Price Quantity Supplied Total Revenue ?
10,000 P4 8,000
8,000 8 8,000
6,000 12 8,000
4,000 16 8,000
2,000 20 8,000

1.1 Based from the schedules , derive demand and supply curves
1.2 What are the equilibrium price and quantity using mathematical and graphical methods
1.3 Derive price elasticity of demand between price 4 and price 12. What is the category?
1.4 Derive total revenue for each price.
2.Given the following equations:
Qs1 = 2P Qd1 = 300 – P
Prices P 25,50, 75,100,125,150, 175,200
2.1 Solve for the equilibrium price and quantity using mathematical and graphical methods.
2.2 If supply function = Qs2 = 2P – 60 while demand is constant and prices ,
2.2.1What is the new equilibrium price and quantity? Use graphical method to show the effect/s.
Plot the original supply and demand curves with the new supply curves and indicate the new
equilibrium.
2.2.2 Identify the effects of the change in supply in the equilibrium price and quantity .