Identify the equilibrium point as e

Reference no: EM131409629

Market researchers have studied the market for milk, and their estimates for the supply of and the demand for milk per month are as follows:

a. Using the above data, graph the demand for and the supply of milk. Identify the equilibrium point as E, and use dotted lines to connect E to the equilibrium price on the price axis and the equilibrium quantity on the quantity axis.

b. Suppose the government enacts a milk price support of $8 per gallon. Indicate this action on your graph, and explain the effect on the milk market. Why would the government establish such a price support?

c. Now assume the government decides to set a price ceiling of $4 per gallon. Show and explain how this legal price affects your graph of the milk market. What objective could the government be trying to achieve by establishing such a price ceiling

Reference no: EM131409629

Questions Cloud

What will be the effect of this competition on the market : What will be the effect of this competition on the market demand for mail delivered by the post office?

What does the electronic privacy control act of 1986 address : What does the Electronic Privacy Control Act of 1986 address? How many titles are there in the Act? Explain what each of the titles covers. List any exceptions and amendments to the original Act of 1986.What is the rationale behind the creation of th..

Why do shortages and surpluses exist for different games : Explain the statement "People respond to incentives and disincentives" in relation to the demand curve and supply curve for good X

Calculate the equilibrium concentrations of reactant : Calculate the equilibrium concentrations of reactant and products when 0.392 moles of CO and 0.392 moles of Cl2 are introduced into a 1.00 L vessel at 600 K.

Identify the equilibrium point as e : Using the above data, graph the demand for and the supply of milk. Identify the equilibrium point as E, and use dotted lines to connect E to the equilibrium price on the price axis and the equilibrium quantity on the quantity axis.

Discuss the concept of judicial review : Which you discuss the roles of law and courts in today's business environment. Differentiate the federal court structure with your state's court structure.Discuss the concept of judicial review.Explain how laws or regulations affect your job in Human..

Fit a linear trend equation to the time series : Fit a linear trend equation to the time series. Using this equation, determine the trend estimate for 2012.- Fit a quadratic equation to the time series, then use the equation to determine the trend estimate for 2012.

Describe the impact of sir robert peel on american policing : Describe the impact of Sir Robert Peel on American policing.Analyze the relationship between the U.S. government and the policing organizations throughout the United States.Explain how this relationship may affect police practices.Include information..

Show the impact on the price of japanese cars sold : Now draw another graph to show how the change in the price of Japanese cars affects the price of American-made cars in the United States. Explain the market outcome in each graph and the link between the two graphs

User Account

All Pages