Demand and Supply

Issue 18/08/2011 | Revision Date 11/06/2013 | Form No. ECT/AC/F.05.02 |
Assignment |

Date | 19/10/2014 | | Time: | 5:00-6:30 PM | | Total Mark: | | | |
| | | | | | | 10 | |
Student’s Name | | |
Student’s ID | | |
| | | | |
Course Name | Microeconomics | | |
Course Code | BUS 201 | |
Semester | Fall, 2014 | |
Instructor’s Name | Dr. Hasan Mustafa, Dr. Mohammad Al Omari, Dr. MyriamAloulou | |
| | |
Scope and Focus: | | |
| Demand and Supply     * Demand and   supply     * Determination of   equilibrium | |
Contributing to the following CLOs: | |
CLO # 3 | Construct the supply and demand curves and interpret them to understand market forces. | |


Questions | 1 | 2 | 3 | Total |
Point | 2 | 6 | 7 | 15 |
Student Mark | | | | |



Note: This Assignmentaccounts for 10% of the student’sfinal grade.

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ASSIGNMENT QUESTIONS-

Q. 1- What are substitutes in production and complementsin production?   Give one
example each.(2 Marks)

Q.2-
Price(dollars per pizza) | Quantity demanded(pizzas per week) | Quantity supplied(pizzas per week) |
  5 | 750 |     300 |
  6 | 700 |     400 |
  7 | 650 |     500 |
  8 | 600 |     600 |
  9 | 550 |     700 |
10 | 500 |     800 |
11 | 450 |     900 |
12 | 400 | 1,000 |

A market research team has come up with the demand and supply schedules for pizza. These schedules are given in the table above. Use these data to analyze the situation in the market for pizza.
  a) Draw a figure showing the demand curve for pizza and the supply curve of pizza. What are the equilibrium price and quantity?(2 Marks)
  b) Suppose the price is $10. Describe the situation in the market and explain how the price of pizza adjusts. (2 Marks)
  c) Now suppose the price is $6. Describe the situation in...