Find the equilibrium price and quantity in market

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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

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