Question

shows information on the demand and supply for bicycles, where the quantities of bicycles are measured in thousands. Price Quantity Demanded Quantity Supplied $120 50 36 $150 40 40 $180 32 48 $210 28 56 $240 24 70 Table 3.6 a. What is the quantity demanded and the quantity supplied at a price of $210? b. At what price is the quantity supplied equal to 48,000? c. Graph the demand and supply curve for bicycles. How can you determine the equilibrium price and quantity from the graph? How can you determine the equilibrium price and quantity from the table? What are the equilibrium price and equilibrium quantity? d. If the price were $120, what would the quantities demanded and supplied be? Would a shortage or surplus exist? If so, how large would the shortage or surplus be?

Answer 1

At $210, the quantity demanded is 28,000 and the quantity supplied is 56,000. The equilibrium price is $150 with an equilibrium quantity of 40,000. When the price is $120, a shortage of 14,000 units exists.

Step-by-step explanation:

a. The quantity demanded and the quantity supplied at a price of $210 are 28 and 56 thousand units respectively.

b. The price at which the quantity supplied is equal to 48,000 is $180.

c. To graph the demand and supply curves, plot the respective quantities demanded and supplied against the prices. The equilibrium price and quantity are determined from the graph where the demand and supply curves intersect. This reflects the price and quantity where the quantity demanded equals the quantity supplied. The equilibrium price and quantity from the table can be found where the two values are the same, which in this case is at a price of $150 with both quantities being 40 thousand units.

d. If the price was $120, the quantity demanded would be 50 thousand units and the quantity supplied would be 36 thousand units, creating a shortage of 14 thousand units.

Answer 2

a. Quantity demanded at $210: 28, Quantity supplied at $210: 56.

b. Price at quantity supplied equals 48,000: $180.

c. Equilibrium price and quantity: $180, 32 (in thousands).

d. At a price of $120, shortage of 14,000 bicycles.

a. The quantity demanded and supplied at a price of $210, refer to the table.

At a price of $210, the quantity demanded is 28 (in thousands), and the quantity supplied is 56 (in thousands).

b. The price at which the quantity supplied equals 48,000, look at the quantity supplied column in the table.

When the quantity supplied is 48 (in thousands), the corresponding price is $180.

c. The demand and supply curves for bicycles, plot the price-quantity pairs on a graph with price on the vertical axis and quantity on the horizontal axis.

The point where the demand and supply curves intersect is the equilibrium point.

From the graph, you can determine the equilibrium price and quantity.

From the table, you can also determine the equilibrium price and quantity by identifying the price at which quantity demanded equals quantity supplied. at a price of $180, both quantity demanded and quantity supplied are 32 (in thousands).

d. At a price of $120, refer to the table to find the quantity demanded and supplied. At a price of $120, the quantity demanded is 50, and the quantity supplied is 36.

To determine whether there is a shortage or surplus, subtract the quantity supplied from the quantity demanded:

50 - 36 = 14. there would be a shortage of 14,000 bicycles.