Questions for demand and supply

1. If Qd= 100-20p and Qs= 10 + 40p. find equilibrium price and quantity.
2. Given demand function Qd=10-4p and supply function Qs= 2+8P determine
market equilibrium price and quantity. Determine new equilibrium price
and quantity if demand curve shifts to Qd’= 16-4P.
3. Suppose the market supply and demand equations for plywood are given
by Qs= 20000+30P and Qd= 40000-20P.
a. Graph supply and demand equations and show the equilibrium price
and quantity.
b. Determine the equilibrium price and quantity algebraically.
c. Suppose an increase in housing starts results in new demand
equation:Qd1= 50000-20P.
Determine new equilibrium price and quantity.
4. A market consists of people A,B and C, whose individual demand equation
are as follows:
A: P= 35-0.5Qa
B: P=50-0.25Qb
C:P= 40-2Qc
a. Determine equilibrium price and quantity
b. Determine quantity purchased by each individual.
5. Following table gives demand and supply of dairy milk.

Price Quantity Quantity shortage/surplus

(rs) demand Supply(Qs
per (Qd) )
unit
10 80 20
15 70 40
20 60 60
25 50 80
30 40 100
a. Graph demand and supply curve and point out equilibrium price and
quantity.
b. At which price there is shortage and surplus.
6. Consider following demand schedules.

Demand(Units)
Price(RS. Income(Y) Incom Income
) Rs. 3,000 e Rs. Rs.
4500 1500
50
100 30
150
D2 D3 D1
a. Complete table above
b. Graph demand curve D1, D2 and D3 and explain the concept of
movement along demand curve and shift in demand curve.
7. Let demand function of the consumer A,B and C are Qa= 50-5P, Qb= 60-5P
and Qc= 70-5P respectively.
Derive individual and market demand curve when price are Rs. 5,6 and 7.