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Module Activity (Basic Micro)

This document contains a student's module activity involving graphical and mathematical approaches to determining market equilibrium. The student is given demand and supply schedules for gasoline and asked to: 1) Graphically show the market equilibrium, surplus, and shortage, identifying the equilibrium price and quantity. 2) Mathematically compute the equilibrium price and quantity using five different demand and supply equations. The student attaches a graph and shows the work to solve the five mathematical problems, finding the equilibrium price and quantity in each case.

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Mary Joy Albandia
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29 views5 pages

Module Activity (Basic Micro)

This document contains a student's module activity involving graphical and mathematical approaches to determining market equilibrium. The student is given demand and supply schedules for gasoline and asked to: 1) Graphically show the market equilibrium, surplus, and shortage, identifying the equilibrium price and quantity. 2) Mathematically compute the equilibrium price and quantity using five different demand and supply equations. The student attaches a graph and shows the work to solve the five mathematical problems, finding the equilibrium price and quantity in each case.

Uploaded by

Mary Joy Albandia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MACASADIA, KIER M.

BSBA-2B

Module Activity
Part 1 Market equilibrium (Graphical Approach)
Direction: Given the following demand and supply schedule, show graphically the market
equilibrium, surplus and shortage; and identify the equilibrium price (Pe) and equilibrium
quantity (Pq). Attach a photo of your graph.

Demand and Supply Schedule for Gasoline

Price Quantity Demanded Quantity Supplied


($)

1.00 800 500

1.20 700 550

1.40 600 600

1.60 550 640

1.80 500 680

2.00 460 700

2.20 420 720

2.40 380 760

 
Part 2 Market equilibrium (Mathematical approach)
Direction: Compute for the equilibrium price and equilibrium quantity.

1.    Qs = -4 + 4P                       Qd = 26 – 2P
2.    Qd = 600 − 2P                   Qs = 300 + 4P
3.    Qd = 20 – P                       Qs = 2 + P
4.    Qd = 25 + 10P                   Qs = 10 – 5P
5.    Qd = 1 + 20P                     Qs = 10 + 10P

 
1. Qd = Qs Qd = 26 – 2(5) Qs = -4 + 4(5)

26 – 2P = -4 + 4P = 26 - 10 = -4 + 20
4P + 2P = -4 - 26 Qd = 16 Qs = 16
6P = 30
6 P 30
=
6 6
P=5

2. Qd = Qs Qd = 600 - 2(50) Qs = 300 + 4(50)

600 – 2P = 300 + 4P = 600 – 100 = 300 + 200


600 - 300 = 4P + 2P Qd = 500 Qs = 500
300 = 6P
300 6 P
=
6 6
50 = P

3. Qd = Qs Qd = 20 – 9 Qs = 2 + 9

20 – P = 2 + P Qd = 11 Qs = 11
-P - P = 2 -18
2P = 20
2 P 20
=
2 2
P=9

4. Qd = Qs Qd = 25 + 10 (-1) Qs = 10 – 5(-1)

25 + 10P = 10 – 5P = 25 -10 = 10 + 5
5P + 10P = 10 – 25 Qd = 15 Qs = 15
15 P −15
=
15 15
P = -1

5. Qd = Qs Qd = 1 + 20(0.9) Qs = 10 + 10(0.9)

1 + 20P = 10 + 10P = 1 + 18 = 10 + 9
1 – 10 = 10P – 20P Qd = 19 Qs = 19
-9 = -10P
−9 −10 P
=
−10 −10
0.9 = P
 
Prepared by:
 
Mark Andrew C. Rimas
Professor

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