Develop a hypothetical table of information for coffee that shows demanded at various price and supply of coffee at these prices draw a demand and supply curve and show a equilibrium price at which the market is cleared of its aupplies
Sure! Here is a hypothetical table that shows the demand and supply of coffee at various prices:
| Price (per unit) | Demand (quantity) | Supply (quantity) |
|-----------------|------------------|------------------|
| $1.00 | 100 | 50 |
| $1.50 | 90 | 70 |
| $2.00 | 80 | 90 |
| $2.50 | 70 | 110 |
| $3.00 | 60 | 130 |
| $3.50 | 50 | 150 |
To draw the demand and supply curves, we can plot the price and quantity pairs from the table on a graph. The demand curve represents the quantity of coffee that consumers are willing to buy at a given price. The supply curve represents the quantity of coffee that producers are willing to sell at a given price.
Here is a graph of the demand and supply curves:
```
Demand Supply
Price | P S |
| ^ ^ |
$3.50 | | | |
| | | |
$3.00 | | | |
| | | |
$2.50 | | | |
| | | |
$2.00 | | | |
| | | |
$1.50 | | | |
| | | |
$1.00 | | | |
---------------------------------------->
Quantity
```
The equilibrium price is the price at which the quantity demanded equals the quantity supplied. From the table, we can see that at a price of $2.00, the quantity demanded is 80 units and the quantity supplied is also 90 units. This is the point where the demand and supply curves intersect.
Therefore, the equilibrium price for coffee in this market is $2.00. At this price, the market is cleared of its supplies, meaning that there is no excess demand or supply.
Sure! To create a hypothetical table of information for coffee demand and supply, we need to gather data on the quantities of coffee demanded and supplied at different prices. Let's assume the following information:
Price (per pound) Quantity Demanded (pounds) Quantity Supplied (pounds)
$8 100 50
$7 150 70
$6 200 90
$5 250 110
$4 300 130
$3 350 150
To illustrate the demand and supply curves, we can plot this data on a graph:
On the x-axis, we will represent the quantity of coffee, and on the y-axis, we will represent the price. The demand curve represents the quantity of coffee that consumers are willing to buy at different prices, while the supply curve represents the quantity that producers are willing to sell at different prices.
To create the demand curve, we can plot the price and quantity demanded points onto the graph and connect them:
Price on y-axis:
$8 - 100
$7 - 150
$6 - 200
$5 - 250
$4 - 300
$3 - 350
Now, we can connect these points with a smooth curve. The demand curve typically slopes downward from left to right, indicating that as the price decreases, the quantity demanded increases.
Next, we'll create the supply curve by plotting the price and quantity supplied points:
Price on y-axis:
$8 - 50
$7 - 70
$6 - 90
$5 - 110
$4 - 130
$3 - 150
Just like the demand curve, we can connect these points with a smooth curve. However, the supply curve usually slopes upward from left to right, representing that as the price increases, the quantity supplied also increases.
Now, let's find the equilibrium price at which the market is cleared of its supplies. The equilibrium price is the point where the demand and supply curves intersect. On the graph, this is the point where the quantity demanded equals the quantity supplied.
In our example, we can see that the equilibrium price occurs at around $5 per pound of coffee. At this price, both the quantity demanded and the quantity supplied are approximately 250 pounds.
By understanding the demand and supply curves and analyzing their intersection, we can identify the equilibrium price, which is a key indicator of market clearing.