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    Power School of Technology: Basic Microeconomics

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    Arnold Quachin Tanay
    This document contains a microeconomics activity that: 1) Defines the demand and supply equations as Qd = 20 - 2P and Qs = -10 + 2P. 2) Calculates the equilibrium price (P=7.5) and quantity (Qe=5) by setting the demand and supply equations equal to each other. 3) Presents a table showing quantity demanded and supplied at different price levels, and whether there is a shortage or surplus at each price. The market reaches equilibrium at a price of 7.5.

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    Power School of Technology: Basic Microeconomics

    Uploaded by

    Arnold Quachin Tanay
    21 views5 pages
    This document contains a microeconomics activity that: 1) Defines the demand and supply equations as Qd = 20 - 2P and Qs = -10 + 2P. 2) Calculates the equilibrium price (P=7.5) and quantity (Qe=5) by setting the demand and supply equations equal to each other. 3) Presents a table showing quantity demanded and supplied at different price levels, and whether there is a shortage or surplus at each price. The market reaches equilibrium at a price of 7.5.

    Original Description:

    BACORE 1 ACTIVITY 5

    Original Title

    BACore1-Activity #5

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    © © All Rights Reserved

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    This document contains a microeconomics activity that: 1) Defines the demand and supply equations as Qd = 20 - 2P and Qs = -10 + 2P. 2) Calculates the equilibrium price (P=7.5) and quantity (Qe=5) by setting the demand and supply equations equal to each other. 3) Presents a table showing quantity demanded and supplied at different price levels, and whether there is a shortage or surplus at each price. The market reaches equilibrium at a price of 7.5.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    21 views5 pages

    Power School of Technology: Basic Microeconomics

    Uploaded by

    Arnold Quachin Tanay
    This document contains a microeconomics activity that: 1) Defines the demand and supply equations as Qd = 20 - 2P and Qs = -10 + 2P. 2) Calculates the equilibrium price (P=7.5) and quantity (Qe=5) by setting the demand and supply equations equal to each other. 3) Presents a table showing quantity demanded and supplied at different price levels, and whether there is a shortage or surplus at each price. The market reaches equilibrium at a price of 7.5.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 5

    POWER SCHOOL OF TECHNOLOGY

    BASIC MICROECONOMICS

    Name: Christine C. Tanay Date: October 7, 2020

    Course/ Year: BSBA – FM 2ND YEAR Score:___________

    Activity # 05
    Due Date: October 12, 2020
    Given the following Demand and Supply Equation:
    Qd = 20 – 2P
    Qs = -10 + 2P

    a. Determine Qe and Pe.


    b. Determine the Qd and Qs per price P and indicate if Surplus or Shortage.

    Price (£) Qd Qs Surplus / Shortage


    0 20 -10 Shortage
    1 18 -8 Shortage
    2 16 -6 Shortage
    3 14 -4 Shortage
    4 12 -2 Shortage
    5 10 0 Shortage
    6 8 2 Shortage
    7 6 4 Shortage
    7.5 5 5 Market Equilibrium
    8 4 6 Surplus
    9 2 8 Surplus
    10 0 10 Surplus
    11 -2 12 Surplus
    12 -4 14 Surplus

    1|Page
    a. Determine Qe and Pe.

    Qd = 20 – 2P
    Qs = -10 + 2p
    Set demand equal to supply:
    Qd = Qs
    20 – 2P = -10 + 2P
    20 + 10 = 4P
    30 = 4P
    Simplify the equation by dividing 4 on both sides:
    30/4 = 4P/4
    P= 7.5
    Therefore, the equilibrium price is 7.5

    To get the equilibrium quantity, you just have to substitute into the supply or demand
    equation. But this time we’re going to substitute P=7.5 to the demand equation:
    Qd = 20 – 2P

    Solve the equation:


    = 20 – 2(7.5)
    = 20-15
    Qe = 5

    b. Determine the Qd and Qs per price P and indicate if Surplus or Shortage.

    2|Page
    PRICE QD = 20 – 2P QS = -10 + 2P SHORTAGE or
    SURPLUS

    = 20 – 2 *0 = -10 + 2*0 Shortage, price


    ceiling
    0 = 20 = -10 + 0
    = -10

    = 20 – 2 *1 = -10 + 2*1 Shortage, price


    ceiling
    1 = 20 – 2 = -10 + 2
    =18 = -8

    = 20 – 2 *2 = -10 + 2*2 Shortage, price


    ceiling
    2 = 20 – 4 = -10 + 4
    = 16 = -6

    = 20 – 2 *3 = -10 + 2*3 Shortage, price


    ceiling
    3 =20 – 6 = -10 + 6
    = 14 = -4

    = 20 – 2 *4 = -10 + 2*4 Shortage, price


    ceiling
    4 = 20 – 8 = -10 + 8
    = 12 = -2

    3|Page
    = 20 – 2 *5 = -10 + 2*5
    5 = 20 – 10 = -10 + 10 Market Equilibrium
    =10 =0

    = 20 – 2 *6 = -10 + 2*6 Surplus, price


    flooring
    6 = 20 – 12 = -10+ 12
    =8 =2

    = 20 – 2 *7 = -10 + 2*7 Surplus, price


    flooring
    7 = 20 – 14 = -10 + 14
    =6 =4

    = 20 – 2 *7.5 = -10 + 2*7.5 Surplus, price


    flooring
    7.5 = 20 – 15 = -10 + 15
    =5 =5

    = 20 – 2 *8 = -10 + 2*8 Surplus, price


    flooring
    8 = 20 – 16 = -10 + 16
    =4 =6

    = 20 – 2 *9 = -10 + 2*9 Surplus, price


    flooring
    9 = 20 – 18 = -10 + 18
    =2 =8

    = 20 – 2 *10 = -10 + 2*10 Surplus, price


    flooring
    10 = 20 – 20 = -10 + 20
    =0 = 10

    4|Page
    = 20 – 2 *11 = -10 + 2*11 Surplus, price
    flooring
    11 = 20 – 22 = -10 + 22
    = -2 = 12

    = 20 – 2 *12 = -10 + 2*12 Surplus, price


    flooring
    12 = 20 – 24 = -10 + 24
    = -4 = 14

    5|Page

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