ECON 340 UOB Quantity Demand and Quantity Supply Worksheet

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ECON 340
ASSIGNMENT-3
First Semester, 2021-2022
Total marks: 10 marks (Chapters 2, & 3)
Student name:
ID.
Section No:
E-mail:
Please read these instructions BEFORE answering the assignment.
Instructions:
1- After answering the assignment, you should save it as a PDF file and upload on BB
2- You should submit the assignment BEFORE December-24, 2021, @ 11:59 PM. After this date it
will not accepted and not graded.
3- Write answer from your own handwrite, copy & paste answer will not be acceptable.
4- Signature on each page of assignment
Question 1 : (3 marks)
1- The ABC sales company firm found that good X has the following demand curve:
Q = 15,500 – 450 P + 0.5 Pop + 0.8 Y + 0.05 A
where Q is the quantity per month, P is price ($), Pop is population, Y is disposable income ($),
and A is advertising expenditure ($).
Currently P = 250, Pop = 1,700,000, Y = 39,500, and A = 14,500.
A. Determine the quantity demanded form this good in the market?
B. Calculate the quantity demand if price increases from 250 $ to 400$
C. Calculate the price necessary to sell 85,0000 units
Question 2: (3 marks)
Given the demand equation and supply equation: Qd= 85-25Px and Qs = -55 + 35Px
A. Calculate the Equilibrium price
B. Calculate the quantity demand and quantity supply
C. Draw the graph and show the equilibrium quantity and equilibrium price.
Question 3: (4 marks)
A. Suppose the quantity demanded of good x has increa sed from 160 to 190 units, due
to a decrease in its price from 8 BD to 6 BD. Calculate the price elasticity of
demand and show the direction of demand curve.
B. I f t h e quantity demanded of good X has increased from 40 to 70 units due to the
decrease in the price of good Y from 6 BD to 4 BD. Calculate the Cross- price
elasticity (Exy) and show the relationship between good X and Y
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economics

quantity demand

Quantity supply

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