Microeconomics
Assignment#1
Date of Submission: 11th March, 2022
Note: Submit the assignment in soft before deadline on Blackboard. Late submissions will lead
to marks reduction.
1. Suppose that the supply curve of Frisbees is Qs= -10,000 + 5000 P and the demand curve
is Qd = 40,000 – 2000 P. Find out the equilibrium price and quantity for Frisbees. Also
show the equilibrium graphically.
2. Suppose that the total demand for wheat and the total supply of wheat per month in the
Kansas city grain market are as follows:
Thousands of
Bushels Demanded
85
80
75
70
65
60
Price per Bushel
3.4
3.7
4.0
4.3
4.6
4.9
Thousands of
Bushels Supplied
72
73
75
77
79
81
Surplus (+) Or
Shortage (-)
a) What is the equilibrium price?
b) What is the equilibrium quantity?
c) Calculate and fill in the empty Surplus Or Shortage column. Mention surplus/shortage
along with the answer.
d) Graph the demand and supply curve for wheat.
e) Why are $3.4 and $4.5 not equilibrium prices?
3. Find the equilibrium price and the quantity price and quantity for the following markets:
i.
Qs = -20 + 3P ; Qd = 220 – 5P
ii. Qs + 32 – 7P = 0 ; Qd – 128 + 9P = 0