Suppose that there are 250 identical individual consumers in the market for commodity X, each with a demand function given by dx = 6-Px and 50 identical producers of commodity X, each with a supply function given by sx =5Px. (8 Marks) a) Derive the market demand function and the market supply function for commodity X. b) Compute the market equilibrium price and equilibrium quantity mathematically. c) Tabulate the market demand schedule and the market supply schedule for commodity X. d) show whether surplus or shortage occurs at i) P = 2 ii) P = 5

Suppose that there are 250 identical individual consumers
in the market for commodity X, each with a demand function given by dx
= 6-Px and 50 identical producers of commodity X, each with a supply
function given by sx =5Px. (8 Marks)

a)     Derive the market demand function and the market supply
function for commodity X.

b)     Compute the market equilibrium price and equilibrium
quantity mathematically.

c)     Tabulate the market demand schedule and the market supply
schedule for commodity X.

d)    show whether surplus or shortage occurs at

i)                   P = 2

ii)                 P = 5