Tham khảo tài liệu 'bài tập về kinh tế vĩ mô bằng tiếng anh- chương 2: cung và cầu', kinh tế - quản lý, kinh tế học phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Chapter 2 The Basics of Supply and Demand CHAPTER 2 THE BASICS OF SUPPLY AND DEMAND EXERCISES 1. Suppose the demand curve for a product is given by Q 300-2P 4I where I is average income measured in thousands of dollars. The supply curve is Q 3P-50. a. If I 25 find the market clearing price and quantity for the product. Given I 25 the demand curve becomes Q 300-2P 4 25 or Q 400-2P. Setting demand equal to supply we can solve for P and then Q 400-2P 3P-50 P 90 Q 220. b. If I 50 find the market clearing price and quantity for the product. Given I 50 the demand curve becomes Q 300-2P 4 50 or Q 500-2P. Setting demand equal to supply we can solve for P and then Q 500-2P 3P-50 P 110 Q 280. c. Draw a graph to illustrate your answers. Equilibrium price and quantity are found at the intersection of the demand and supply curves. When the income level increases in part b the demand curve will shift up and to the right. The intersection of the new demand curve and the supply curve is the new equilibrium point. 2. Consider a competitive market for which the quantities demanded and supplied per year at various prices are given as follows Price Demand millions Supply millions 60 22 14 80 20 16 100 18 18 120 16 20 a. Calculate the price elasticity of demand when the price is 80 and when the price is 100. We know that the price elasticity of demand may be calculated using equation from the text 5 Chapter 2 The Basics of Supply and Demand aqd qd p aqd ED ---- -------- A AP P With each price increase of 20 the quantity demanded decreases by 2. Therefore pa A - AP 20 At P 80 quantity demanded equals 20 and Ed 20 . Similarly at P 100 quantity demanded equals 18 and Ed 100 . b. Calculate the price elasticity of supply when the price is 80 and when the price is 100. The elasticity of supply is given by AQs E Qs P AQs S AL Qs AP P With each price increase of 20 quantity supplied increases by 2. Therefore f AQ 2 . AP 20 At P 80 quantity supplied equals 16 and
