University:
Stanford University
Course:
FINANCE 201 | Managerial Finance
Academic year:

2024
Views:

69

Pages:

1
Author:

sonalhava9qv

MARKET EQUILIBRIUM WORKSHEET 1. In the diagram to the right, plot the following hypothetical supply and demand information for personal computers (PCs): Quantity Demanded (QD - millions) 2 4 7 11 16 22 2. 3. Price (Php) 3,000 2,500 2,000 1,500 1,000 500 Quantity Supplied (QS - millions) 17 16 14 11 7 2 The equilibrium price "clears the market," in that quantity demanded equals quantity supplied. The equilibrium price = 1,500 (1)Is there excess demand or excess supply? (2)How many million units? (3)Are PC inventories rising or falling? Is the incentive to raise or lower (4) price? At a price of Php. 2,500... At a price of Php.1,000... excess supply excess demand 14,000,000 7,000,000 rising falling raise lower