Market for slim mobiles is represented by the following functions
(A)Q+1/3P= 36, Q+9=1/2 P (B) Q=4P2-4P , Q=44-3P2
Required
i)Identify the demand and supply functions. Give reasons for your answer
ii) Find the equilibrium price and quantity
b)If supply of fuel increased by 12% due o 540 increase in aggregate prices. Calculate elasticity of supply and suggest ways of stabilizing the supply of fuel in Kenya.
c) Suppose the market demand and market supply for a commodity are given as follows:
Qd = 100-2p
Qs = 4 + 4p
i) Determine the equilibrium price and quantity for the market.
d)Suppose the maximum price is fixed at $20. Illustrate the effect of this price control on a supply and demand diagram. Is there a shortage? If so, what is the excess demand?
e) The popularity of brown ‘chapatis’ causes consumers’ tastes to shift away from bread. Show the effect of this shift on the market demand for blue band, which is used mainly when people eat toast
3 answers