Question

Study the following diagram and answer the questions:

Questions:

1. Prepare a hypothetical schedule for market demand and supply for the given market.
2. State the equilibrium price and corresponding market demand and market supply for the given market.

Answer 1

1. 
   

   Price (₹)	Quantity Demanded	Quantity Supplied	Relation Between DD and SS
   30	500	300	DD > SS
   40	400	400	DD = SS
   50	300	500	DD < SS

2. The equilibrium price for the given market is ₹40, and the market demand and supply are 400.