10 Suppose the demand and supply curves for eggs in the Unit

10. Suppose the demand and supply curves for eggs in the United States are given by the following equations: Q100 20P Qs10 40P where Qa millions of dozens of eggs Americans would like to buy each year; Q, millions of dozens of eggs U.S. farms would like to sell each year; and P price per dozen eggs. a. Fill in the following table: QUANTITY DEMANDED (Qa PRICE (PER DOZEN) $ .50 $ 1.00 1.50 $2.00 $ 2.50 QUANTITY SUPPLIED (Q.) b. Use the information in the table to find the equilibrium c. Graph the demand and supply curves and identify the equi- price and quantity. librium price and quantity.

Solution

Answer a : Table showing information such as :

Qd = 100-20P put the value of P

QS = 10+40P put the value of P

Answer b : From the above table Equilibrium price is $1.50 where as Equilibrium quantity is 70 units. It shows that Equilibrium demanded is equal to Equilibrium supply.

Answer c: In the graph where Quantity demanded is equal to Quantity supplied. It shows that price is $1.50 and Equilibrium quantity is 70 units.

Price ( Per dozen)	Qd	Qs
0.50	90	30
1	80	50
1.50	70	70
2.00	60	90
2.50	50	110