Practice #1 Answers
Given the table, answer the following questions.
Combining Demand and Supply
for Cornflakes
Price per Box
(dollars) |
Quantity Demanded
(millions of boxes per year) |
Quantity Supplied
(millions of boxes per year) |
|
5 |
9 |
18 |
|
4 |
10 |
16 |
|
3 |
12 |
12 |
|
2 |
15 |
7 |
|
1 |
20 |
0 |
- When you first encounter a table, why
is it important to review the table title and row and column
labels?
The table title, and row and column labels give
us an overview of the information contained in the table.
This helps to orient us to the information being presented in
the table.
- What are the labels for each column?
Include the units of each column in your answer.
Column 1: Price
per box, in units of dollars.
Column 2: Quantity
demanded, in units of millions of boxes per year.
Column 3: Quantity supplied,
in units of millions of boxes per year.
- At what price are the quantity demanded
and the quantity supplied the same?
The supply and demand are the same at a
price per box of $3.
- Describe the changes in both the quantity
demanded and quantity supplied, relative to the price per box.
As the price per box decreases
(from $5 to $1) the quantity demanded
per year increases (from 9 million to 20 million).
As the price per box decreases, the quantity
supplied drops from 18 million boxes per year to 0
boxes per year.
So, as the price drops, the demand rises,
and the supply drops.
- At what price will cornflakes stop
being supplied?
At a price of $1 per box cornflakes
will stop being supplied.
If you got all of this correct, you should move on to the next
unit. If you had any problems reading the table for this practice,
you should read through the detailed solution. You may also wish
to try the additional practice for this unit.
