Question 1 (4marks) Complete Table 3.1. Then answer the indicated questions. Quantity Demanded by...

Question 1 (4marks) Complete Table 3.1. Then answer the indicated questions. Quantity Demanded by CM 8 58.00 6.00 400 200 20 22 Quantity Supplied by Avery Brandon Casa Price $8.00 $400 4 Table 3.1 Individual Demand and Supply Schedules a) Find the equilibrium quantity and the price. Show the demand and supply curves and the market equilibrium in the graph. b) If the market price is 2 what is the disequilibrium in the market?(Shortage/surplus.). How much? c) If the market price is 85 what is the disequilibrium in the market? (Shortage/surplus.). How much? Question 2 (4marks) Assume that the market for fresh chicken is in equilibrium Using suitable graphs indicate what will be the change in equilibrium price and quantity in response to the following determinants in the short run. a) The price of chicken feed increases. b) The consumers' income increase and fresh chicken is normal good c) The price of frozen chicken decreases and it is a substitute in use for fresh chicken d) More farms start growing fresh chicken farms.

Question 4 (2 marks) "A market research agency reported that the price for new automobile is likely to increase between March 2012 and December 2012 in a city of Budapest due to expected increase in population. Responding to this study most of the automobile dealers increased their order from the manufacturers. But despite the increase in both demand and supply the price of cars decreased in the market over time." -Use a market equilibrium graph over time to analyze the situation. Explain. Page 3