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Please find attached the solution to assignment # 1 of economics. Please use this document only for information and guidance.

I will not be held liable for any misuse of this document.

Best Regards,
BM

Question:

Suppose the market demand and market supply for coffee is given by the

following equations:

Qd = 850 – 15P

Qs = 400 + 30P

A. Find quantity demanded and quantity supplied when the price of coffee is

Rs. 8. Is there a surplus or shortage in the production of coffee? What

should happen to the price of coffee?

B. Find the equilibrium price for coffee by using given demand and supply

equations.

C. Prove that the price found in part (B) is an equilibrium price.

D. Show the equilibrium condition in coffee market graphically.

Marks: A = 6(4+1+1), B = 2, C = 3, D = 4

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Replies to This Discussion

bhayya mereeeee graph theek kar lijiye.equilibrium position par dono graph intersect karte hain cross form mein aur neeche wala area shortage show karta hai aur uppar wala surplus center mein equlibrium aata hai boss :D
SAIMA IM AGREE WITH U......
please share last quiz of graph in Assignment Number 01of ECO401

Thanks
please share last quiz of graph in Assignment Number 01of ECO401

Thanks
please share last quiz of graph in Assignment Number 01of ECO401

Thanks
gragh ki smjh nhi a rhi sai k kon sa thk he???i think kami wala thk he lakin demand line ki jaga supply line aey gi r supply line ki jga demand line ae gi,mtlb dono line k name chnge kr do bs,thk he ya ghlt???
:) I have only one question, if you make it cross type graph, there is only one question, at a place with 0 Rs as price, can the quantity be in hundreds ??

Dats the reason, both of my lines originate when P = 0 , Qty should be 0 as well :)

Regards
thanks alot BM ..........

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