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Economics Homework Two Answers - Student Two (view source)
Revision as of 19:24, September 14, 2009
, 19:24, September 14, 2009no edit summary
2. Given: P= 30-Q; P= 6+Q. So, P=P, and 30-Q = 6+Q, which equals 12. So, Q=12. Inserting this answer back into the first original equation (P= 30-Q) gives me, P=18. '''So, the Quantity is 12 and the Price is 18.'''
2. Given: P= 30-Q; P= 6+Q. So, P=P, and 30-Q = 6+Q, which equals 12. So, Q=12. Inserting this answer back into the first original equation (P= 30-Q) gives me, P=18. '''So, the Quantity is 12 and the Price is 18.'''
3. When the ''supply'' of a good/service increases, the price decreases because the demand has stayed the same. If there is more supply, then the public is not willing to pay a higher price for it. However, when the ''demand'' for something increases the price will go up because the supply has stayed the same and the public is wiling to pay more to get the good/service.
3. When the ''supply'' of a good/service increases, the price decreases because the demand has stayed the same and its curve slopes downward. If there is more supply, then the public is not willing to pay a higher price for it. However, when the ''demand'' for something increases the price will go up because the supply has stayed the same and the public is wiling to pay more to get the good/service.
4. If there is an oversupply of over-ripe fruit, then the demand for it goes down, because there is plenty. The downward slope of the demand curve shows this to be true since the further the supply curve is to the right (or the greater the supply), the further down the demand will have gone. Since the demand has gone down for this over-ripe fruit, the grocery store is forced to lower its price to meet the supply/demand equilibrium in order to sell all the fruit before it has gone bad.
4. If there is an oversupply of over-ripe fruit, then the demand for it goes down, because there is plenty. The downward slope of the demand curve shows this to be true since the further the supply curve is to the right (or the greater the supply), the further down the demand will have gone. Since the demand has gone down for this over-ripe fruit, the grocery store is forced to lower its price to meet the supply/demand equilibrium in order to sell all the fruit before it has gone bad.