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Example 3 Market Equilibrium Chapter 2.3 Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price.

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Presentation on theme: "Example 3 Market Equilibrium Chapter 2.3 Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price."— Presentation transcript:

1 example 3 Market Equilibrium Chapter 2.3 Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars. a.If the price is $140, how many units are supplied and how many are demanded? b.Does this price give a surplus or a shortfall of the product? c.What price gives market equilibrium? 2009 PBLPathways

2 Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars. a.If the price is $140, how many units are supplied and how many are demanded? b.Does this price give a surplus or a shortfall of the product? c.What price gives market equilibrium?

3 2009 PBLPathways a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

4 2009 PBLPathways Demand function: Supply function: price per unit quantity of units a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

5 2009 PBLPathways Demand function: Supply function: price per unit quantity of units a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

6 2009 PBLPathways Demand function: Supply function: price per unit quantity of units a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

7 2009 PBLPathways Demand function: Supply function: price per unit quantity of units a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

8 2009 PBLPathways Demand function: Supply function: price per unit quantity of units a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

9 2009 PBLPathways Demand function: Supply function: price per unit quantity of units a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

10 2009 PBLPathways Demand function: Supply function: price per unit quantity of units a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

11 2009 PBLPathways Demand function: Supply function: price per unit quantity of units a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

12 2009 PBLPathways Demand function: Supply function: price per unit quantity of units a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

13 2009 PBLPathways Demand function: Supply function: price per unit quantity of units a.If the price is $140, how many units are supplied and how many are demanded? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

14 2009 PBLPathways b.Does this price give a surplus or a shortfall of the product? Demand function: Supply function: price per unit quantity of units Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

15 2009 PBLPathways Demand function: Supply function: price per unit quantity of units b.Does this price give a surplus or a shortfall of the product? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

16 2009 PBLPathways c.What price gives market equilibrium? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

17 2009 PBLPathways c.What price gives market equilibrium? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

18 2009 PBLPathways c.What price gives market equilibrium? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

19 2009 PBLPathways (20,160) Demand Supply c.What price gives market equilibrium? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

20 2009 PBLPathways (20,160) Demand Supply c.What price gives market equilibrium? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

21 2009 PBLPathways (20,160) Demand Supply c.What price gives market equilibrium? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

22 2009 PBLPathways (20,160) Demand Supply c.What price gives market equilibrium? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars.

23 2009 PBLPathways (20,160) Demand Supply c.What price gives market equilibrium? Suppose the daily demand for a product is given by, where q is the number of units demanded and p is the price per unit in dollars, and that the daily supply is given by, where q is the number of units supplied and p is the price per unit in dollars PBLPathways


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