Name: Date:

Year/Section:

20ACTIVITY NO.1

1. From the following data, plot the supply and the demand curves and determine the equilibrium
price and quantity.

Price (per scoop) Quantity Demanded Quantity supplied

30 5 60
25 15 50
20 20 20
15 45 15
10 75 10
5 100 5

Identify for each price, whether surplus or shortage is derived.

2. Form the following supply and demand function, determine the equilibrium price and quantity.
Qd= 1800-5P
Qs= -400+ 5P
3. Suppose that the demand function for a commodity is given by Qd= 9000-100P.
A. Derive the market demand schedule for this commodity using the various prices below.
Indicate your answer on the corresponding space provided on the table.

Price 10 20 30 40 50 60 70
Qd

B. Draw the demand curve for this commodity.

4. Suppose that the supply function for a commodity is given by:
Qs= 300+300P
A. Derive the market supply schedule for this commodity using the prices on the problem
number 3.

Price 10 20 30 40 50 60 70
Qs
5. Suppose that the demand function in example number 3 remains constant while Qs changes to
Qs= 1000+100P.
A. Derive the new market supply schedule.
B. On the same graph, draw the demand curve, the original supply curve (given in problem 4),
and the new supply curve and determine the equilibrium point.