Question
a) Use a diagram to explain the difference between an increase in demand and an increase in the quantity demanded. [4] b) Complete the following
a) Use a diagram to explain the difference between an increase in demand and an increase in the quantity demanded. [4]
b) Complete the following table to find the market demand curve for cups of coffee at a company(2)
Price | Mary-Ann | Rhys | Stella | Geraint | Market Total |
3 | 8 | 4 | 6 | 10 | |
4 | 7 | 3 | 5 | 9 | |
5 | 6 | 2 | 4 | 8 | |
6 | 5 | 1 | 3 | 7 | |
7 | 4 | 0 | 2 | 6 |
c) Complete the following table to find the market supply for cups of coffee at the company (2)
Price | Firm A | Firm B | Market Supply |
3 | 4 | 6 | |
4 | 6 | 8 | |
5 | 8 | 10 | |
6 | 10 | 12 | |
7 | 12 | 14 |
d) Using the tables above in (b) and (c), plot the market demand and supply for coffee on the same set of axes. Label your diagram and axes clearly. [6]
e) Using the information above, calculate the demand and supply equations for this market. [4]
f) Use the equations in (e) above to solve for the equilibrium in this market. [2]
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