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The table below shows quantity demand and quantity supply of note book at different price levels. P QD QS $0 24 0 1 21 5
The table below shows quantity demand and quantity supply of note book at different price levels. P QD QS $0 24 0 1 21 5 2 18 10 3 15 15 4 12 20 5 9 25 6 6 30 a) Draw demand and supply curve. (Clearly label your graph) and state equilibrium price and quantity? [ 3 m] b) If price of note book at $2, discuss what will be the consequences of this price level and how will market forces act to reach equilibrium price. [2 m] c) State one factor that lead to outward shift (increase) in demand curve. Discuss how the factor identified would affect the demand. [2 m] d) Discuss one factor that lead to inward shift (decrease) in Supply curve. [2 m]
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