Overview
Question 1: The table below shows the quantity of workers demanded and supplied in Los Angeles over the past 3 months. Use the table to answer question A-C.
Quantity Demand and Supply of workers in Los Angeles
Annual Salary ($)
Quantity Demanded
Quantity Supplied
Surplus/Shortage quantity
10,000
60,000
1,000
20,000
55,000
5,000
30,000
50,000
5,000
40,000
45,000
13,000
50,000
40,000
15,000
100,000
20,000
20,000
120,000
11,000
30,000
200,000
8,000
35,000
250,000
5,000
40,000
300,000
1,000
45,000
400,000
500
50,000
- Fill in the table above (Surplus or shortage quantity). In order to get points, showing workings [Show how the answer was derived for each row]. Simply adding the formula above or below the table is insufficient. Calculations can be provided using Microsoft word, paper, or Excel/Google Sheet. (8 points)
- Provide a graph representing the table above. Show the equilibrium quantity and salary. (4 points)
- Does this table follow the law of demand and supply? Explain (4 points)
Question 2: Below is a table showing the price of Nutella Chocolate spread and quantity sold at a local store. Use table below to answer questions A-E
Quantity Demand and Supply of Nutella Chocolate spread in a local store
Quantity Demand and Supply of Nutella Chocolate spread in a local store
Price ($)
Quantity Demanded
Quantity Supplied
5
30
4
6
28
6
7
26
10
8
22
14
9
18
18
10
14
22
11
10
28
12
5
30
Use the midpoint method for elasticity to solve questions A-B