In The Supply-and-demand Schedule Shown Above, Identify The Equilibrium Price, Quantity Supplied, And Quantity Demanded:$[ \begin{tabular}{|c|c|c|} \hline Price Of Video Game & Quantity Supplied & Quantity Demanded \ \hline $50 & 0 & 500
Introduction
In the world of economics, the supply-and-demand schedule is a fundamental concept used to understand the behavior of buyers and sellers in a market. It helps us determine the equilibrium price and quantity, which is the point at which the quantity supplied equals the quantity demanded. In this article, we will analyze a given supply-and-demand schedule to identify the equilibrium price, quantity supplied, and quantity demanded.
The Supply-and-Demand Schedule
The supply-and-demand schedule is a table that shows the relationship between the price of a product and the quantity supplied and demanded. The table is as follows:
| Price of Video Game | Quantity Supplied | Quantity Demanded |
|---|---|---|
| $50 | 0 | 500 |
| $60 | 100 | 400 |
| $70 | 200 | 300 |
| $80 | 300 | 200 |
| $90 | 400 | 100 |
| $100 | 500 | 0 |
Identifying the Equilibrium Price
To identify the equilibrium price, we need to find the point at which the quantity supplied equals the quantity demanded. This is the point where the supply and demand curves intersect. Looking at the table, we can see that the quantity supplied and demanded are equal at a price of $80.
| Price of Video Game | Quantity Supplied | Quantity Demanded |
|---|---|---|
| $80 | 300 | 200 |
Equilibrium Quantity
The equilibrium quantity is the quantity at which the quantity supplied equals the quantity demanded. In this case, the equilibrium quantity is 300 units.
Why is $80 the Equilibrium Price?
The equilibrium price is the price at which the quantity supplied equals the quantity demanded. In this case, the equilibrium price is $80 because at this price, the quantity supplied (300 units) equals the quantity demanded (200 units).
Why is 300 the Equilibrium Quantity?
The equilibrium quantity is the quantity at which the quantity supplied equals the quantity demanded. In this case, the equilibrium quantity is 300 units because at this quantity, the quantity supplied (300 units) equals the quantity demanded (200 units).
Conclusion
In conclusion, the equilibrium price is $80, and the equilibrium quantity is 300 units. This is the point at which the quantity supplied equals the quantity demanded.
Understanding the Supply-and-Demand Schedule
The supply-and-demand schedule is a fundamental concept in economics that helps us understand the behavior of buyers and sellers in a market. It helps us determine the equilibrium price and quantity, which is the point at which the quantity supplied equals the quantity demanded.
Key Takeaways
- The equilibrium price is the price at which the quantity supplied equals the quantity demanded.
- The equilibrium quantity is the quantity at which the quantity supplied equals the quantity demanded.
- The supply-and-demand schedule is a table that shows the relationship between the price of a product and the quantity supplied and demanded.
Real-World Applications
The supply-and-demand schedule has many real-world applications. For example, it can be used to determine the price of a product in a market, or to understand the behavior of buyers and sellers in a market.
Limitations of the Supply-and-Demand Schedule
The supply-and-demand schedule has some limitations. For example, it assumes that the supply and demand curves are linear, which may not always be the case. Additionally, it does not take into account other factors that may affect the supply and demand of a product, such as government policies or technological changes.
Future Research Directions
There are many future research directions related to the supply-and-demand schedule. For example, researchers could investigate the impact of government policies on the supply and demand of a product, or explore the use of machine learning algorithms to predict the supply and demand of a product.
Conclusion
Frequently Asked Questions
Q: What is the supply-and-demand schedule?
A: The supply-and-demand schedule is a table that shows the relationship between the price of a product and the quantity supplied and demanded.
Q: What is the equilibrium price?
A: The equilibrium price is the price at which the quantity supplied equals the quantity demanded.
Q: What is the equilibrium quantity?
A: The equilibrium quantity is the quantity at which the quantity supplied equals the quantity demanded.
Q: How do I determine the equilibrium price and quantity?
A: To determine the equilibrium price and quantity, you need to find the point at which the quantity supplied equals the quantity demanded. This is the point where the supply and demand curves intersect.
Q: What is the difference between supply and demand?
A: Supply refers to the quantity of a product that producers are willing and able to produce and sell at a given price. Demand refers to the quantity of a product that consumers are willing and able to buy at a given price.
Q: What are the factors that affect supply and demand?
A: The factors that affect supply and demand include:
- Price: An increase in price can lead to an increase in supply and a decrease in demand.
- Technology: An improvement in technology can lead to an increase in supply.
- Government policies: Government policies such as taxes and subsidies can affect supply and demand.
- Consumer preferences: Changes in consumer preferences can affect demand.
- Producer expectations: Changes in producer expectations can affect supply.
Q: What is the law of supply?
A: The law of supply states that as the price of a product increases, the quantity supplied also increases.
Q: What is the law of demand?
A: The law of demand states that as the price of a product increases, the quantity demanded decreases.
Q: What is the concept of elasticity?
A: Elasticity refers to the responsiveness of quantity demanded or supplied to changes in price.
Q: What are the types of elasticity?
A: There are two types of elasticity:
- Price elasticity of demand: This measures the responsiveness of quantity demanded to changes in price.
- Price elasticity of supply: This measures the responsiveness of quantity supplied to changes in price.
Q: What is the concept of cross elasticity?
A: Cross elasticity measures the responsiveness of quantity demanded of one product to changes in the price of another product.
Q: What are the applications of the supply-and-demand schedule?
A: The supply-and-demand schedule has many applications in economics, including:
- Determining the price of a product in a market
- Understanding the behavior of buyers and sellers in a market
- Analyzing the impact of government policies on the supply and demand of a product
- Predicting the supply and demand of a product using machine learning algorithms
Q: What are the limitations of the supply-and-demand schedule?
A: The supply-and-demand schedule has some limitations, including:
- It assumes that the supply and demand curves are linear, which may not always be the case.
- It does not take into account other factors that may affect the supply and demand of a product, such as government policies or technological changes.
Conclusion
In conclusion, the supply-and-demand schedule is a fundamental concept in economics that helps us understand the behavior of buyers and sellers in a market. It has many applications in economics, including determining the price of a product in a market and understanding the behavior of buyers and sellers in a market. However, it also has some limitations, including assuming that the supply and demand curves are linear and not taking into account other factors that may affect the supply and demand of a product.