1. The demand function is Qd=1150-10p, meaning quantity demanded decreases by 10 for every 1 peso increase in price.
2. The supply function is Qs=-400+20p, meaning quantity supplied increases by 20 for every 1 peso increase in price.
3. The equilibrium price is 52 pesos and the equilibrium quantity is 633 units.
1. The demand function is Qd=1150-10p, meaning quantity demanded decreases by 10 for every 1 peso increase in price.
2. The supply function is Qs=-400+20p, meaning quantity supplied increases by 20 for every 1 peso increase in price.
3. The equilibrium price is 52 pesos and the equilibrium quantity is 633 units.
1. The demand function is Qd=1150-10p, meaning quantity demanded decreases by 10 for every 1 peso increase in price.
2. The supply function is Qs=-400+20p, meaning quantity supplied increases by 20 for every 1 peso increase in price.
3. The equilibrium price is 52 pesos and the equilibrium quantity is 633 units.
1. The demand function is Qd=1150-10p, meaning quantity demanded decreases by 10 for every 1 peso increase in price.
2. The supply function is Qs=-400+20p, meaning quantity supplied increases by 20 for every 1 peso increase in price.
3. The equilibrium price is 52 pesos and the equilibrium quantity is 633 units.
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JESSICA C.
ONG COA BLOCK 1E UNIVERSITY OF THE CORDILLERAS College of Business Administration 1st Trimester, SY 2020-2021 ONLINE MIDTERM EXAMINATION AE 101 COA1E-2 (Managerial Economics)
INSTRUCTIONS: Using the table below , solve for the answers of the given questions. All answers with decimal form should be rounded to second decimal places. All final answers should be placed in a box.
1. Formulate the demand function.
2. Formulate the supply function. 3. Compute for equilibrium price and equilibrium quantity.
Step C b= 275a+15,375b=162,500 275a+15,125b=165,000 250b=-2500 250 b= -10 a= 5a+275b=3,000 5a+275(-10)=3,000 5a-2750=3,000 5a=3000+2750 5a=5750 5 a=1,150 Qd=1150-10p For every 10 units increase in Quantity demanded, there is a peso decrease in price; For every 10 units decrease in Quantity demanded, there is a peso increase in price.
For every 20 units increase in Quantity supplied, there is a peso increase in price; For every 20 units decrease in Quantity supplied, there is a peso decrease in price.
