Economics Assignment Questions and Answers 2022

Running head: Economics Assignment
Economics Assignment
Name of student
Course name

1
Economics Assignment
Table of Contents
Question 1: Demand and supply......................................................................................................3
Question 2: Production possibility frontier......................................................................................5
Question 3: Market structure...........................................................................................................7
Reference list...................................................................................................................................9

2
Economics Assignment
Question 1: Demand and supply
a) Demand curve of the apricot is given by P=200-0.4Q-------- (i) and the supply function of
the apricot is given by P=20+0.5Q--------- (ii) where p is the price of apricot and Q is the
quantity of the apricot. Now in order to determine the equilibrium price and quantity of
apricot we must equate demand and supply equation thus
200-0.4q= 20+0.5q or 0.9q = 180 or Q = 180/0.9 = 200. Now putting the value of the Q in
the above equation no (ii) we get P = 120
b) In order to draw the demand and supply diagram from the equation of demand and supply
it is important to identify the initial point from where the supply and demand graph are
going to start. In the demand function, if we plot Q= 0 then we will get P=200 and when
p= 0 then the Q is 200/0.4=500. Now in order to determine the supply curve we are
plotting P= 200 in the supply function and getting Q= 360. Thus there is excess demand
within the economy
0 100 200 300 400 500 600
0
50
100
150
200
250
300
350
400
Supply
Demand
Quantity
P
r
i
c
e