Imagine you are the owner of a business manufacturing and selling a particular type of table in the home furniture industry.

The average variable costs of producing each table are 180 while the fixed costs are 12,000.

Also, you have carried out some market research and found that the total number of customers wishing to buy the table varies with changes in price of the table as shown below:

Price (E) Quantity supplied 100 220 140 260 180 320 220 400 260 500 300 640 340 880 380 1400 Q4) Draw a supply curve for the tables on the same diagram as the demand curve you have drawn for Q3. Q5) On the supply/demand diagram find the equilibrium price and equilibrium quantities sold/bought. Q6) Would you make a loss or profit by selling the equilibrium quantity and charging the equilibrium price? Q7) If quantity demanded of tables increases by 180 at all prices, draw the new demand curve and find the new equilibrium price and quantities. Also, identify and explain specific factors which might have caused an increase in the demand for tables. Q8) Calculate your new sales and revenues at all prices and all corresponding higher new quantities demanded.