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Plot the supply curve and the demand curve for bicycles

06/01/2021 Client: saad24vbs Deadline: 2 Day

Week 2 Assignment


Submit as a Word Document.

Please answer the following questions:






Suppose we have the following market supply and demand schedules for bicycles:


Price Quantity Demanded Quantity Supplied

$100 70 30

$200 60 40

$300 50 50

$400 40 60

$500 30 70

$600 20 80


a. Plot the supply curve and the demand curve for bicycles. (Note please don’t worry about turning in the curve electronically, just plot it on paper. Doing so will help with the remaining questions.)


b. What is the equilibrium price of bicycles?


c. What is the equilibrium quantity of bicycles?


d. If the price of bicycles were $100, is there a surplus or a shortage? How many units of surplus or shortage are there? Will this cause the price to rise or fall?


e. If the price of bicycles were $400, is there a surplus or a shortage? How many units of surplus or shortage are there? Will this cause the price to rise or fall?


2. Please share 2 or 3 experiences in your life when you either benefited from the over supply (think sales and discounts) of a product or when you had to pay more for a product because it was in high demand. Please make your comments about ½ page long.



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