1 Consider The Market Demand Supply For Economics Textbooks Hard Copy Illustrate 6 Graphs And Explain The Effe 1 (40.47 KiB) Viewed 17 times
1. Consider the market (Demand & Supply) for economics textbooks (hard copy). Illustrate (6 Graphs) and explain the effects of the following events: A. The enrollment in economics classes is expected to decrease overtime. B. The market price of paper increases. C. The market price of economics textbook increases. D. There is an increase in the number of publishers of economics textbooks. E. Publishers expect that the market price of economics textbook will decrease next week. F. More students are expected to use digital textbook or e-book. 2. Plot the below demand and supply schedule. A. What is the market equilibrium? B. Describe the situation at a price of $10. What will occur? Describe the situation at a price of $2. What will occur? C. Suppose the government imposed a minimum price of $7. What would occur? Illustrate. D. Indicate what the price would have to be to represent an effective price ceiling. Point out the surplus or shortage that results. Illustrate a price floor E. Illustrate a price floor and provide an example of a price floor on your graph. Quantity Demanded 1000 800 700 640 600 550 520 460 400 300 Price $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 Quantity Supplied 200 240 300 400 600 820 1000 1300 1600 1950
1. If the enrolment is expected to decrease over time; then the demand curve will shift leftward. B. The market price of paper increases: the demand of textbook will fall. C. The market price of economies textbook increases: the demand will fall. D. There is an increase in number of publishers of economic textbook: the supply will fall. E. When they expect that the market price of economies textbook will fall; then supply will fall. F. More students are expected to use digital textbook: then demand of textbook will fall. 2. A) The market equilibrium is 600 quantity at $5 price B) If the price is $10, then there is an excess supply of goods (1950>300) If the price is $2, then there is situation of excess demand. C) If the government sets minimum price of $7, then there will be excess supply in the market. (D) The effective price ceiling is when price is below the equilibrium price $5. E) The price floor is when the price is more than the equilibrium price. It should be more than the equilibrium price
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