Describe the equilibrium price and quantity in this market

Reference no: EM13745647

The use of E-Books has increased in recent years, especially with the advent of mobile E-Readers. A marketing research firm recently developed the following supply and demand schedules for E-books:

Price/E-Book	Quantity Demanded	Quantity Supplied
$18	4000	10,000
16	5000	9500
14	6000	9000
12	7000	8500
10	8000	8000
9	9000	7500
8	10000	7000
7	11000	6500
6	12000	6000
5	13000	5500
4	14000	5000
2	15000	4500

Assignment Guidelines:

Using Microsoft (MS) Excel, construct a graph showing supply and demand in the E-Book market based on the data above. (Save this file because you will re-work it later in the assignment.) When finished, copy and paste or import your graph into an MS Word document.

In your MS Word document, below your imported graph, respond to the following:

Explain how the Laws of Supply and Demand are illustrated in this graph.
Describe the equilibrium price and quantity in this market.
Assume that the government imposes a price floor of $12 in the E-Book market. Explain what would happen in this market.
Assume that the price floor is removed and a price ceiling is imposed at $6. Explain what would happen in this market.
Now, assume that the price of E-Readers (used with E-Books) drops from $60 by fifty percent. How would this change impact the demand for E-Books? Explain your answer. Then, reconstruct your original graph to show this change and place it in your MS Word document below your explanation.

Reference no: EM13745647

Questions Cloud

Foreign exchange market : Suppose 144 yen could be purchased in the foreign exchange market for one U.S. dollar today. If the yen depreciates by 8.0% tomorrow, how many yen could one U.S. dollar buy tomorrow?

What best defines the term tenor : What best defines the term tenor? What was depicted in a typical morality play, such as Everyman? What best describes Geoffrey Chaucer's most significant achievement?

Statements best describes the transaction : Question 1: You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the followi..

Existence of either dark matter or dark energy : In a 2-3 paragraph essay, identify one piece of evidence for the existence of either dark matter or dark energy, and describe it in detail

Describe the equilibrium price and quantity in this market : Explain how the Laws of Supply and Demand are illustrated in this graph and describe the equilibrium price and quantity in this market.

Design an economic policy solution to the problem : Briefly describe the economic problem you have selected and assess the impact the problem poses to society - Design an economic policy solution to the problem.

Systems thinking basics : For this assignment, complete and submit the Activities 1, 2, 4, & 5 in Section 2 of Systems Thinking Basics. Do not simply give one word responses. Expand to some extent for full credit! And for those asking from the onset, don't over think "flip..

Annualized rate of return to the swiss investor : Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,708.74, with a maturity value of $10,000. The exchange rate at that time was 1.420 Swiss francs per dollar. Today, at maturity, the exchange rate is 1.324 S..

What are the steps involved in analyzing the changes : What are the steps involved in analyzing the changes in the equilibrium of the market. Analyze the effects with an example of events on a market, which includes shift of both the demand curve and supply curve.

User Account

All Pages