The seminars № 1

The purpose of the lesson:

- study the laws of supply and demand

- address factors affecting the supply and demand

- consider the types of market equilibrium

- explore types of elasticity

Topics for discussion:

1. The market mechanism as the relationship and interaction of the elements of the market: demand, supply and prices.

2. Demand as an integral part of the market. The law of demand.

3. The proposal - an element of the market. The law of supply.

4. Elasticity of demand and supply.

Questions and tasks:

1. Demand for the product is presented in the form of the equation P = 10 - 0,2 Qd, and the supply equation P = 2 + 0,2 Qs. To determine the equilibrium price and the equilibrium volume of sales.

2. Supply and demand for meals in the student dining room by the equations:

Qd = 2400 - 100P,

Qs = 1000 + 250P,

where, Q - the number of meals per day, P - price lunch (on units).

A) Calculate the equilibrium price and quantity sold at that price lunches.

B) concern about the students, the administration has set a price on a 3 units. for lunch. Describe and calculate the consequences of the decision.

3. Function of demand for this product Qd = 7-P, the supply function of the product Qs = -5 + 2P, where P - the price of the product in tenge. Determine the equilibrium price and the equilibrium volume of sales. What will be the income of producers? If the price is set by the government at 3 Tenge, what would happen?

4. The demand curve for soft drinks has the form: Qd = 600 - 4P, gdeQd-volume demand. If the supply curve is of the form: Qs = 200 + 4P, then what will be the equilibrium output and the equilibrium price?

5. Suppose that the supply curve has the form of bread: Qs = 200 + 3P, where Qs - the volume of supply of bread, P - the price of bread.

If the demand curve - the horizontal line, and Qd = 320, then what will be the equilibrium price of bread?

6. If a price reduction of 5% will reduce the overall supply of 8%, the proposal: a) inelastic b) elastic.

7. The elasticity of demand for this product at a price equal to - 0.25. Income elasticity of demand - (- 0.8). By what percentage will change the demand for this product, if its price fell by 8%, while revenues grew by 5%. It is assumed that the price level remains unchanged.

8. Price elasticity of demand for the goods is 0.5, and the income elasticity of demand for the same product is 1.6. How will the demand for this product, if the price increases by 10%, and revenues increase by 15%?