Individual Assignment 1: Demand & Supply Analysis | Microeconomics | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

INDIVIDUAL ASSIGNMENT GROUP 1 TOPIC 2 Name: Cao Yên Đan MSV: 11221189 Class: E-BBA 14.3 Ex1: Price 100 120 140 160 180 200 220 240 ($/Units) Quantity 1000 900 800 700 600 500 400 300 Demanded (units) Quantity 300 400 500 600 700 800 900 1000 supplied (units) 1. -Demand equation:
Qd = f(P) b = ∆P = 140 – 120 = − 0.2 ∆Qd 800 – 900 P = a – bQd ⟹ P = a – 0.2Qd
From the table, we can see when the price is 180, the Qd is 600: 180 = a – 0.2 × 600 ⟹ a = 300 ⟹ P = 300 – 0.2 × Qd -Supply equation: Q –
s = f(P) d = ∆P = 140 120 = 0.2 ∆Qs 500 – 400 P = c + dQs ⟹ P = c + 0.2Qs
From the table, we can see when the price is 200, the Qs is 800: 200 = c + 0.2 × 800 ⟹ c = 40 ⟹ P = 40 + 0.2 × Qs
-Equilibrium price and equilibrium quantity can be found at point E where:
Pe = 300 – 0.2 × Qd = 40 + 0.2 × Qs
Qd = Qs = Qe ⟹ 0.4 × Qe = 260 × Qe = 650 (units) Pe = 170 ($/unit) 2.
-At $200 the surplus of fridge surfaces with 800 – 50 0 = 300 (units)
-At $110 the shortage of fridge surfaces with 950 – 3 0 5 = 600 (units)
Because at this price the quantity of demand is 950 units and the quantity of supply is 350 units 3.
-Suppose the supply of fridge is constant, if price of electricity increase. Demand will be affected. M
ore specifically it causes demand to decrease.
Because for the fridge to work, we need electricity. It’s one of the no - n price factors (P is constant).
-Given that quantity demanded fridge change 300 units at each price level
we have the new curves demonstrated as below:
+If we add 300 units to the quantity demanded for the fridge at each price
The new equilibrium price for the fridge: PE = 200$/unit
and the new equilibrium quantity for the fridge: QE = 800 units
+If we subtract 300 units to the quantity demanded for the fridge at each price
• If Qd = 0 → P = a = 240 (
$/unit) → Pd = 240 – 0,2.Q d
• Because supply is constant, so Ps = 40 + 0,2.Qs
• We have Pe = Pd = Ps ↔ Pe = 240 – 0,2.Qd = 40 + 0,2.Qs And Qe = Qd = Qs
So the new equilibrium price for the fridge: PE = 14 $ 0 /unit
and the new equilibrium quantity for the fridge: QE = 500 units
4. Suppose the government imposes a tax of $ 10 per one units of fridge sold: -Supply will be affected. M
ore specifically it causes supply to decrease.
Because producers do not want to lose profits, nor do they want to have to
reduce the quality of their products. It’s one of the non-price factors (P is constant).
-We have the new curves demonstrated as below +Demand is constant: P = 30 0 – 0,2.Q d
+If Qs = 0 → P = a = 50 ($/unit) → Ps = 50 + 0,2.Qs
+ We have Pe = Pd = Ps ↔ Pe = 30 0 – 0,2.Qd = 50 + 0,2.Qs
So the new equilibrium price for the fridge: PE = 17 $ 5 /unit
and the new equilibrium quantity for the fridge: QE = 625 units
5. Suppose government supports for the sellers the amount of $ 10 per one units of fridge sold: -Supply will be affected. M
ore specifically it causes supply to increase.
Because producers have more money to produce. It’s one of the non-price factors (P is constant).
-We have the new curves demonstrated as below +Demand is constant: P = 30 0 – 0,2.Q d
+If Qs = 0 → P = a = 30 ($/unit) → Ps = 30 + 0,2.Qs
+ We have Pe = Pd = Ps ↔ Pe = 30 0 – 0,2.Qd = 30 + 0,2.Qs
So the new equilibrium price for the fridge: PE = 165$/unit
and the new equilibrium quantity for the fridge: QE = 675 units Ex2:
1. An increase in Vietnamese personal income tax rates
Their demand for motorcycles will decrease because the customers have less
money than they used to. They must make a choice and only buy things they
really need. 2 Effect of the increase of Vietnamese income tax rates cause
the shift of the D curve to the left. In this case, the equilibrium price and
quantity will be shifted to the lefthand side of the old equilibrium price and quantity.
2. An increase in the price of steel
The supply of motor cycle will decrease because the price of input resources
rises. The manufacturers will reduce the amount of motor cycle producers to
stay their profit. Effect of the increase of price of steel cause the shift of the
S curve to the left. In this case, the equilibrium price and quantity will be
shifted to the lefthand side of the old equilibrium price and quantity.
3. An improvement in technology in motor vehicle production at the same time
as a recession hits the Vietnamese economy.
An improvement in technology in motor vehicle production helps the supply
of motor vehicle production increase so the price will fall. While at the same
time, a recession hits the Vietnamese economy make the demand fall and the
price will drop even further. Effect of this double event cause the shift of the
S curve and the shift of the D curve to the left. In this case, the equilibrium
price and quantity will be shifted to the righthand side of the old equilibrium price and quantity.