Economics 1

fe) Businesses (h) Product Households markets CHAPTER 3 HOMEWORK #3 1-. The demand schedules of three individuals (Tom, Dick, and Harry) are shown. If they are the only three buyers of DVDs, complete the market demand schedule for DVDs. Graphically, is the market demand for a product the horizontal or vertical sum of the individual demand schedules? Quantity demanded, DVDS Price Tom Dick Harry Total $15.00 13.00 11.00 6 9.00 10 7.00 15 16 2-Answer the next question(s) on the basis of the given supply and demand data for wheat: Bushels Demanded Bushels Supplied Per Per Month Price Per Bushel Month 45 $5 77 50 73 56 68 61 61 67 57 1. Refer to the above data. Equilibrium price will be 2. Refer to the above data. Equilibrium quantity will be 3. Refer to the above data. If the price in this market was $4, it would be excess supply or demand and how much. 4. Give an example of price floor and an example of price ceiling 5. Suppose supply has increased 10 units at each price a) Equilibrium price will be b) Equilibrium quantity will be 3-In the space below each of the following, indicate the effect [increase (+), decrease (-)] on equilibrium price (P) and equilibrium quantity (Q) of each of these changes in demand and/ or supply. Q (a) Increase in demand, supply constant (b) Increase in supply, demand constant (c) Decrease in demand, supply constant (d) Decrease in supply, demand constant