Find the equilibrium price and quantity in market

Reference no: EM1373949

I have recently been employed by a new company selling electronic dog feeders. My customer has asked me to gather some information on the supply and demand for feeder, which is given below, and address several questions regarding the supply and demand for these feeders.

Price/Feeder Quantity Demanded Quantity Supplied
$300 500 1800
270 600 1700
240 700 1600
210 800 1500
180 1000 1400
150 1100 1300
120 1200 1200
90 1300 1100
60 1400 1000
30 1500 900
10 1600 800

Questions:
1. Construct a graph showing supply and demand in the electronic dog feeder market, using Microsoft Excel.
2. How are the laws of supply and demand illustrated in this graph? Explain your answers.
3. What is the equilibrium price and quantity in this market?
4. Suppose that the government imposes a price floor of $180 in the feeder market. What would happen in this market?
5. Suppose that the price floor is removed and a price ceiling is imposed at $90. What would happen in this market?
6. Now, assume that the price of feeders drops by 50%. How would this change impact the demand for feeders? Explain your answer and reconstruct the graph developed in question one to show this change.
7. Suppose that incomes of the consumers in this market increases. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.
8. Suppose that the number of sellers decreases in this market. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.
9. Describe the difference between a normal good and an inferior good. Would your answers to question 7 change depending on whether this good is a normal or inferior good? Why?

Reference no: EM1373949

Questions Cloud

Create a production budget : Create a production budget and estimate the materials, labor, and overhead costs for year 2 - Alloy and Steel inventories will not change. Sales are roughly uniform over the year.

Illustrate information account in forecasting initial sales : Assume a software producer is about to release a new version of its popular software. Illustrate what information do you think it would take into account in forecasting initial sales.

Evaluate how much of the exploration cost : Evaluate how much of the exploration cost will be capitalized and shown as an asset on the company's balance sheet as of December 31, 2013 and repeat process using the full cost method

Illustrate what happens when problems with communication : Illustrate what happens when there are problems with communications in the workplace. Use at least one resource to support your key points. Respond to at least 2 of your fellow students' posts.

Find the equilibrium price and quantity in market : I have recently been employed by a new company selling electronic dog feeders. My customer has asked me to gather some information on the supply and demand for feeder,

Does warranty accrual decision create any ethical dilemma : Does warranty accrual decision create any ethical dilemma for Bly and since warranty expenses vary, what % do you think Bly could select for the current year? Justify your response.

What company wants to forecast demand : company wants to forecast demand using the weighted moving average.

What profit earned from the sale of each large poster : Student Enterprises sells 2 sizes of wall posters, a large 3- by 4-foot poster and a smaller 2- by 3-foot poster. The profit earned from the sale of each large poster.

Legitimate decision in computing depreciation : Find decisions that managers like Choi must make in applying depreciation methods and is Choi's rule an ethical violation, or is it a legitimate decision in computing depreciation?

User Account

All Pages