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Sam, a former Lohan Ltd employee secured a job as a buyer of electrical goods for resale for an electrical retailer - Junior Cycle Business Studies - Question c - 2022
Question c
Sam, a former Lohan Ltd employee secured a job as a buyer of electrical goods for resale for an electrical retailer. As a buyer of stock for resale, they need to pro... show full transcript
Worked Solution & Example Answer:Sam, a former Lohan Ltd employee secured a job as a buyer of electrical goods for resale for an electrical retailer - Junior Cycle Business Studies - Question c - 2022
Step 1
Use the information in the table below to draw the demand and supply curves for the Playstation 5 (PSS).
Answer
To draw the demand and supply curves, we first plot the given data on a graph with 'Price' on the vertical axis and 'Quantity' on the horizontal axis. The demand curve generally slopes downward, illustrating the relationship that as price decreases, quantity demanded increases. Conversely, the supply curve slopes upward, showing that as price increases, quantity supplied increases.
Using the provided data:
- At €300, quantity demanded is 1,000 units, and quantity supplied is 200 units.
- At €350, quantity demanded is 800 units, and quantity supplied is 400 units.
- At €400, quantity demanded is 600 units, and quantity supplied is 600 units (this is the equilibrium point).
- At €450, quantity demanded is 400 units, and quantity supplied is 800 units.
- At €500, quantity demanded is 200 units, and quantity supplied is 1,000 units.
Plotting these points gives us our curves.
Step 2
Use your diagram to identify the equilibrium price and equilibrium quantity. Write your answers in the table below.
Answer
From the graph drawn in the previous step, the equilibrium price of the PSS is €400, where the quantity demanded equals the quantity supplied. The equilibrium quantity is 600, indicating that at this price, both buyers and sellers are satisfied with the market conditions.
Step 3
Indicate whether the following items are substitutes for or complimentary to a PSS by placing a tick (✓) in the correct box.
Answer
For the items listed:
- Xbox: Substitute ✓
- PSS Controller: Complementary ✓
- Headset: Complementary ✓
- Gaming chair: Complementary ✓
This indicates that the Xbox serves as an alternative product (substitute) while the other items enhance the experience of using the PSS (complementary).
Step 4
Indicate which of the following statements are true or false by placing a tick (✓) in the correct box.
Answer
For each statement:
- Participation in the black market is illegal: True ✓
- The black market is beneficial for businesses in Ireland: False ✓
This captures the legal implications associated with the black market as well as its effect on legitimate businesses.