Reference no: EM133083613
Question 1: Using the demand schedule below, plot the demand curve on the graph and answer four questions about demand and elasticity
Instructions: Use the tool provided 'Demand' to plot the curve point by point (plot 5 points total)
Price
(dollars per pair)
|
Quantity Demanded (in pairs per year) |
|
$120
|
6
|
|
100
|
10
|
|
80
|
15
|
|
60
|
20
|
|
40
|
26
|
a. illustrate the demand curve on the following graph.
b. How much will consumers spend on shoes at the price of
(i) $120?
(ii) $100?
(iii) $80?
(iv) $60?
(v) $40?
c. As the price drops from $120 to $100 a pair, demand is
d. As the price drops from $80 to $60 a pair, demand is
e As the price drops from $60 to $40 a pair, demand is
Question 2: If a product becomes more popular.
a. Which curve will shift?
b. Along which curve will price and quantity move?
c. At the new equilibrium, will price be higher or lower?
d. At the new equilibrium, will quantity be higher or lower?
Question 3: Calculate market quantity demanded and quantity supplied, graph market demand and market supply, then answer two questions about equilibrium
a. Given the following data, complete the table.
b. Using the table above, construct market supply and demand curves.
Instructions: Use the tools provided Demand and 'Supply to plot each line point by point (plot 5 points total for each line)
c. The equilibrium price is ____
d. Identify the amount of surplus or shortage that would exist at a price of $4.
Question 4: Using the figure as a guide, answer the following questions
a. Determine the size of the market surplus or shortage that would exist at a pnce of $40.
There would be a ____ of ____units
b. Determine the size of the market surplus or shortage that would exist at a pnce of $20.