Managerial Economics Assignment #1.

Prelim Period

Triñanes, Patricia Nicole M. BSA14 September 21, 2018

1.) Given the following equations, demand: 20-2P ; and supply: 8+4P, compute for
equilibrium quantity and equilibrium price; graph the equilibrium situation and write a
sentence to describe the equilibrium.

Qd = Qs P=2
20-2P = 8+4P Qd=20-2P Qs=8+4P
Placing the supply and demand curves together, these two
= 20-2(2) curves =
will intersect at Price = 2, and Quantity = 16. 
8+4(2)
20-8 = 4P-2P
12 6 P = 20-4 = 8+8
In this market, the equilibrium price is 2 and equilibrium
= Qd=16 Qs=16
quantity is 16.
6 6
At this price level, market is in equilibrium. Quantity
supplied is equal to quantity demanded (Qd = Qs).  
2.)
Market is clear.

Given the demand and supply equations,

Q = 80-P (Demand) ; and Q = -10 + 0.5P (Supply)
Find the equilibrium price and quantity; graph the equilibrium situation and write a
sentence to describe the equilibrium.

Qd = Qs P = 60
80-P = -10+0.5P
80+10 = P+0.5P Qd=80-P Qs= -10+0.5P
90 1.5 P = 80-60 = -10+0.5(60)
= = 20-4 = -10+30
1.5 1.5
Qd=20 Qd=20
Placing the supply and demand curves together, these
two curves will intersect at Price = 60, and Quantity =
20. 
In this market, the equilibrium price is 60 and
equilibrium quantity is 20.

At this price level, market is in equilibrium. Quantity

supplied is equal to quantity demanded (Qd = Qs).  

Market is clear.
3.) The quantity demanded of Pizza depends upon the price of pizza (Pp), monthly income
(Y), and the price of a related good hotdog (Phd). Demand for pizza (Qp) is given by the
equation: Qp = 300 – 16Pp + 4Y – 30Phd

Find the demand equation of Qp in terms of the price of pizza (Pp), when Y is Php100
and Phd = Php12.

Qp = 300 – 16Pp + 4Y – 30Phd

Qp = 300 – 16Pp + 4(100) – 30(12)

Qp = 300 – 16Pp + 400 – 360

Qp = 340 – 16Pp