Data Response

1. Assume that the weekly market and supply of cabbage are given by the following.

Price Quantity Demanded Quantity Supplied

$ (000 Kilos) (000 Kilos)

4.00 30 80

3.50 35 68

3.00 40 62

2.50 45 55

2.00 50 50

1.50 55 45

1.00 60 38

A. Plot the above points on a graph and show the equilibrium price and quantity.

(5 marks)

B. Show graphically the movement on a Demand Curve, in comparison to a shift of the curve. (5 marks)

C. List the factors that are responsible for the shifting of the supply curve.

(7 marks)

D. Assume that the cabbage farmers are paid a guaranteed minimum price of $3.00 per kilo. How much will the Government have to buy from the farmers? (Illustrate on a separate graph.)

How much will it cost the Government?