Suppose that the market of laptops is given by following supply and demand curves given below:
Qd = 5000 − 3p
Qs = 1000 + p.
Answer the following questions on excel sheet using the above demand and supply equations.
i) Take the range of values for the price from $1 to $30 and calculate corresponding demand and supply quantities.
ii) Using the values computed above plot the graph of demand and supply curves on the same graph.
iii) Using the graph above find the market clearing price and quantity for the market of laptops.
iv) Compute the point demand and supply elasticity for all the values of demand and supply curve.
v) If the price of a laptop is set at $2000 then find the amount of laptops that producers will be willing to supply and amount of laptops consumers will be willing to buy at this price level. Will there be any surplus or shortage created at this price.