Fecha: 28-Jan-2019

Assignment No.4: supply and demand.

1.
a)

Supply of pizzas
Demand of
pizzas

Market
equilibium point

b) The market equilibrium its possible when the demand of pizzas is two hundred per
day at $14.
 Fecha: 28-Jan-2019

2.

a)

Supply of
chewing gum
packets

Market
equilibium point

Demands of
chewing gum

The equilibrium price is at $50 per chewing gum packet

 Fecha: 28-Jan-2019

3.
b)

Supply of chewing
gum ($70)

Market equilibium
point ($70)

Demands of chewing
gum ($70)
Q

In the case of a rise in the price of chewing gum, the demand would decrease while the supply
increases. This situation will leave us with a equilibrium point lower than before of the rise
in price.
Fecha: 28-Jan-2019

4.

Decrease on supply of
chewing gum

Market equilibrium
point

a) The supply curve would shift leftwards, and this will affect the market equilibrium
point.
b) The demand would be the same (there is no change in price per packet).
c) The new equilibrium price is $60 and the equilibrium quantity is 100 million of
packets per week.
Fecha: 28-Jan-2019

5.

Decrease on supply of
chewing gum

Increase in demand

The equilibrium price after the decrease in supply and increase in demand is $70 and the
equilibrium quantity is of120 million packets.