Scribd
Upload
11 views11 pages

bai tap 2

Uploaded by

Vũ Xuân Tuyến
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
11 views11 pages

bai tap 2

Uploaded by

Vũ Xuân Tuyến
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 11

Name: Vu Xuan Tuyen – EBBA 16.

Group assignment presentation 2


Exercise 1:

Answer
1)
- The demand equation for fridge: P = a – b × Qd
∆𝑃
+ We have ( ∆𝑃=20, ∆𝑄𝑑=100)
∆𝑄𝑑
∆𝑃 20 1
=>b = = =
∆𝑄𝑑 100 5

+ Substitute the values of b and P, Q of any point in the diagram:


1
100 = 𝑎 − × 1000 => a = 300
5
𝟏
Therefore, the demand equation for fridge is P = 300 − × Qd (1)
𝟓

- The supply equation for fridge: P = c + d × Qs

∆𝑃
+ We have ,( ∆𝑃= 20, ∆𝑄𝑠= 100)
∆𝑄𝑠

∆𝑃 20 1
=>d = = =
∆𝑄𝑠 100 5
+ Substitute the values of d and P, Q of any point in the diagram:

1
100= 𝑐 + × 300 => c = 40
5

𝟏
Thus, the supply equation for fridge is P = 40 + × Qs (2)
𝟓

-Equilibrium price for fridge:

From (1), (2), We have Qd = 1500 - 5P; Qs = 5P – 200


To QE = Qd = Qs => 1500 - 5P = 5P – 200
=> P = 170
-Equilibrium quantity for fridge:

QE = Qd => QE = 1500 - 5×170


=> QE = 650

2)

+) At the price of $200

Qd=1500 -5P =1500-5×200=500

Qs = 5P – 200 = 5 ×200 – 200 = 800


=>Qd < Qs

The surplus of fridge at the price of $ 200 is

∆ 𝑄 = Qs – Qd = 800 – 500 = 300 (units)

+) At the price of $110


Qd = 1500 -5P = 1500 – 5×110 = 950

Qs = 5P – 200 = 5 ×110 – 200 = 350


=>Qd > Qs
The shortage of fridge at the price of $ 110 is

∆ 𝑄 = Qd – Qs = 950 - 350 = 600 (units)

3)

*) In case the supply of fridge is constant, the price of electricity


increase => The demand for fridge will decrease because when
electricity price goes up, the cost of producing product increases,
simultaneously => the price of product will rise and according to the law
of demand, the quantity demanded will decrease. So, demanded curve
will shift to the left side.

*) The quantity demanded for fridge decrease 300 units at each price
level:
∆𝑃
+ We have =( ∆𝑃=20, ∆𝑄𝑑′=100)
∆𝑄𝑑′

∆𝑃 20 1
b= = =
∆𝑄𝑑′ 100 5

+ Substitute the values of b and P, Q of any point in the diagram:

1
100 𝑎 − × 700
5
=>a = 240
𝟏
Therefore, the new demand function for fridge is: P = 240 − × Qd’
𝟓
The market balances again when the quantity demanded (new) equals
the quantity supplied, or:
Qd’ = Qs

 1200 – 5P = 5P – 200
 P = PE’ = 140

PE’ = 140 => QE’ = 500

So, the new equilibrium is P = 140, Q = 500

4)

The government imposes a tax of $ 10 per one units of fridge sold, this
means the price will increase $10 per one units
1
The new supply function is P = 50 + QS’’ or QS’’ = 5P – 250
5

The market balances again when the quantity supplied (new) equals the
quantity demanded, or:
QS’’ = Qd
 5P – 250 = 1500 -5P
 P = PE’’ = 175
PE’’ = 175 => QE’’ = 625

The equilibrium price is $175, and equilibrium quantity is 625 units

5)
The government supports for the sellers the amount of $ 10 per one
units of fridge sold, the price will decrease $ 10 per one unit
1
The new supply function is P = 30 + QS’’ or QS’’ = 5P – 150
5

The market balances again when the quantity supplied (new) equals the
quantity demanded, or:
QS’’ = Qd
 5P – 150 = 1500 - 5P
 P = PE’’ = 165
PE’’ = 165 => QE’’ = 675

The equilibrium price is $165, and equilibrium quantity is 675 units

Exercise 2:

1)
The demanded curve will shift to the left compared to the former
(Because tax is decided by the government – one of the non-price
factors. If the Vietnamese personal income tax rates increase, the
demand will decrease)
2)
The supply curve will shift to the left of the former (Because when the
price of the input increases, the supply will decrease)
3)

- The improvement in technology makes motor vehicle supply quantity


rise.

- However, there happens an economic recession. Therefore, the price of


motor vehicle needs to be decreased to balance with the market,
Because of that, consumer’s demand will drop.

- In this case, the supply curve will be shifted to the right and the demand
curve will be shifted to the left.

- As we can see, both the new equilibrium price and equilibrium quantity
move down to the lower left of the formal one.

You might also like