Reading 13: Demand and Supply Analysis

Question 1

Demand Function

Demand and Supply Analysis

13.1

Answer 1

Question 2

Example of a Demand Function

Demand and Supply Analysis

13.2

Answer 2

Question 3

Demand Function Concentration on Price

Demand and Supply Analysis

13.3

Answer 3

Hold constant other values and rewrite the demand function for Px

Question 4

Example of Inverse Demand Function

Demand and Supply Analysis

13.4

Answer 4

Rearrange demand function so that you are solving for Px in terms of Q

Question 5

An Individual Seller’s Supply Function

Demand and Supply Analysis

13.7

Answer 5

Question 6

Example of a Supply Function

Demand and Supply Analysis

13.8

Answer 6

Question 7

Supply Function Concentration on Price

Demand and Supply Analysis

13.9

Answer 7

Question 8

Example of Inverse Supply Function

Demand and Supply Analysis

13.10

Answer 8

Question 9

Aggregate Demand (Supply) Function

Demand and Supply Analysis

13.13

Answer 9

Simply multiply the demand (supply) function by the number of buyers (suppliers).

The collapsed and inverse are the same method as with other examples.

Question 10

Equilibrium

Demand and Supply Analysis

13.19 - 13.20

Answer 10

Q_x^d = Q_x^s

Set market demand function equal to supplier demand function to find P_x.

Do the same but with the inverse demand function to find Q_x.

Question 11

Elasticity of Demand

(Percent Change)

Demand and Supply Analysis

13.23

Answer 11

Question 12

Income Elasticity of Demand

Demand and Supply Analysis

13.25

Answer 12

Question 13

Cross-price Elasticity of Demand

Demand and Supply Analysis

13.26

Answer 13