Introduction to Microeconomics
Problem Set 1
1) Suppose that the supply curve of Frisbees is Qs= -10,000 + 5000 P and the demand curve
is Qd = 40,000 – 2000 P. Find out the equilibrium price and quantity for Frisbees.
2) Suppose that the total demand for wheat and the total supply of wheat per month in
the Kansas city grain market are as follows:
Thousands of
Bushels Demanded
Price per Bushel Thousands of
Bushels Supplied
Surplus (+) Or
Shortage (-)
85 3.4 72
80 3.7 73
75 4.0 75
70 4.3 77
65 4.6 79
60 4.9 81
a) What is the equilibrium price?
b) What is the equilibrium quantity?
c) Fill in the empty Surplus (+) Or Shortage (-) column.
d) Graph the demand and supply curve for wheat.
e) Why are $3.4 and $4.5 not equilibrium prices?
3) Find the equilibrium price and the quantity price and quantity for the following markets:
Qs = -20 + 3P & Qd = 220 – 5P
Qs + 32 – 7P = 0 & Qd – 128 + 9P = 0
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