Question

1. We are examining the market for gold picture framesin Ontario.Given below are the demand schedule and supply schedule for this product for one year. Accurately graph the demand and supply curves on one graph and determine equilibrium in this market. Label the graph and axises properly. State where equilibrium is (both price and quantity), don’t just point to it on the graph. Make sure you have the price and quantity demanded on the correct axis.   (5 marks – 4 marks for graph and 1 mark for equilibrium)

Price	Quantity Demanded
$45	1,800,000
$60	1,575,000
$95	1,330,000
$100	1,300,000
$125	1,195,000
$160	1,085,000
$185	900,000
$210	745,000

Price	Quantity Supplied
$45	645,000
$60	740,000
$95	865,000
$100	910,000
$125	1,195,000
$160	1,750,000
$185	1,925,000
$210	2,100,000

Answer 1

Equilibrium point is where quantity demanded equals quantity supplied.

The Equilibrium Price is $125 and Equilibrium Quantity is 1195000.

Price	Quantity Demanded	Quantity Supplied
$45.00	1800000	645000
$60.00	1575000	740000
$95.00	1330000	865000
$100.00	1300000	910000
$125.00	1195000	1195000
$160.00	1085000	1750000
$185.00	900000	1925000
$210.00	745000	2100000

The required graph is as under: