Price(dollars): 5 , 4, 2
Quantity Demand(lbs): 2 , 3, 5
1. Using the partial demand schedule for bananas provided,derive the demand equation and graph the demand curve for bananas.
Answer the following questions using the demand equation. Plot each point and show any necessary changes on the graph.
A. What is the quantity demanded for bananas at $1 per pound? Label this as point A on your graph.
B. What happens if zoo keepers find that monkeys really hate bananas? Illustrate this on your graph and label the shift "B."
C. What happens if the price falls to 50 cents per pound?(Pt.C)
D. What happens if bananas are found to cure baldness?Illustrate this on your graph and label the shift "D."
2. The demand equation for DVDs is estimated to be Qd = 10-1/3P. Graph this equation and answer the following questions.
Plot each point and show any necessary changes on the graph. (Use the equation to get exact numbers then plot points on graph.)
A. What is the quantity demanded of DVDs when the price is $12? (Pt.A)
B. What happens if everyone that normally buys DVDs get a 20% raise? (Pt.B)
C. What happens if the price of itunes movies fall dramatically? (estimate Pt. C)