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Excel Based Exercise

The document describes demand and supply relationships in the forest products industry using equations. It provides a spreadsheet calculating quantity demanded, supplied, and surplus/shortage across a range of prices from $1 to $3.50. A graph is included plotting the demand and supply curves based on the price and quantity data.

Uploaded by

aayushi bhandari
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237 views4 pages

Excel Based Exercise

The document describes demand and supply relationships in the forest products industry using equations. It provides a spreadsheet calculating quantity demanded, supplied, and surplus/shortage across a range of prices from $1 to $3.50. A graph is included plotting the demand and supply curves based on the price and quantity data.

Uploaded by

aayushi bhandari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Excel based Problems

Demand and Supply Curves. The following relations


describe demand and supply consitions in the forest
products Industry

QD = 80,000 - 20,000P (Demand)


QS = -20,000 + 20,000P (Supply)

where Q is quantity measured in thousands of board


feet (one square foot of lumber, one
inch thick) and P is price in dollars.
Set up a spreadsheet to illustrate the effect of price (P), on the
quantity supplied (QS), quantity demanded (QD), and the resulting
surplus (+) or shortage (-) as represented by the difference between
the quantity supplied and the quantity demanded at various price
levels. Calculate the value for each respective variable based on a
range for P from $1.00 to $3.50 in increments of 10¢ (i.e., $1.00,
$1.10, $1.20, . . . $3.50).

Lumber and Forest Industry Supply and Demand Relationships

QD = 80,000 - 20,000P
(Demand) QS = -20,000 + 20,000P (Supply)

Price Quantity Demanded Quantity Supplied Surplus (+) or Shortage


$1.00 60000 0 -60000
$1.10 58000 2000 -56000
$1.20 56000 4000 -52000
$1.30 54000 6000 -48000
$1.40 52000 8000 -44000
$1.50 50000 10000 -40000
$1.60 48000 12000 -36000
$1.70 46000 14000 -32000
$1.80 44000 16000 -28000
$1.90 42000 18000 -24000
$2.00 40000 20000 -20000
$2.10 38000 22000 -16000
$2.20 36000 24000 -12000
$2.30 34000 26000 -8000
$2.40 32000 28000 -4000
$2.50 30000 30000 0
$3.00 20000 40000 20000
$3.50 10000 50000 40000
Using price (P) on the vertical or y-axis and quantity (Q) on the
horizontal or xaxis, plot the demand and supply curves for the
lumber/forest products industry over the range of prices indicated $4.00
previously.
$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

$0.00
0 10000 20000

Quantity
$4.00

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

$0.00
0 10000 20000 30000 40000 50000 60000 70000

Quantity Demanded Quantity Supplied

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