Question

The marketing manager for the company Doggie Heaven Toys, has a table of prices and quantity demanded of the market for plastic ball throwing sticks for dog owners. He has plotted the quantity demanded downward sloping curve and now must plot the supply curve. Take a look at the table and identify which of the following supply curves will be the correct supply curve for his supply and demand graph.

Dog Ball Thrower Toy Market
Price ($)	Demanded	Supplied
$10	25	10
$20	20	20
$30	15	30
$40	10	40
$50	5	50

Answer 1

Answer: Using the given information the following demand-supply schedule is prepared.

Price	Quantity Supplied	Quantity Demanded
10	10	25
20	20	20
30	30	15
40	40	10
50	50	5

Using above schedule, the following demand-supply curve is prepared.

From the above graph it is visible that equilirium takes place at price $20 where quanitity demanded is equal to quantity supplied i.e. 20 units.