Q1. Illustrates the market for chocolate bars has the following demand and supply
schedules: [1.5 Marks]
Price Quantity Demanded Quantity Supplied
$3 111 26
$4 100 53
$5 80 80
$6 64 92
$7 51 111
$8 37 120
a. Graph the demand and supply curves. What is the equilibrium price and quantity in this market?
b. If the actual price in this market were above the equilibrium price, what would
drive the market toward the equilibrium?
c. If the actual price in this market were below the equilibrium price, what would
drive the market toward the equilibrium?
Sample Solution
