Illustrate the graphical analysis of supply

and demand

550
500
450
400
350
300
250
200
150
 Solve the following:
(Commodity: Beef)
• Equilibrium (E1) is priced at Php450/kg at Q1
• At a farm price of Php350/kg, how much is the mark up price?
• Government intervened imposing a price ceiling at Php250/kg.
Determine the bracket of shortage1 from Q2 to Q3.
• The demand shifted after a decrease in the original price by
Php150/kg. Determine the new equilibrium price (E2) at Q4.
• From the new equilibrium price (E2), Determine at what quantities
will the shortage (shortage2) be, considering there is no change
in the price ceiling by the government. (please label the
quantities properly.

*Each item has 5 pts.

 S1

550
500
E1
P1 450
400
350
P3 300 E2
P2 250
200
Shortage (2) D1
150 D2 Shortage (1)

Q2 Q4 Q5 Q1 Q3