What is the equilibrium price and quantity in this market

Reference no: EM13247817

You have been hired by a new firm selling electronic dog feeders. Your client has asked you to gather some data on the supply and demand for the 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

Your client has asked that you develop a report addressing the following questions so that you can present these findings to their Board of Directors:

Questions:

a. Construct a graph showing supply and demand in the electronic dog feeder market, using Microsoft Excel.

b. How are the laws of supply and demand illustrated in this graph? Explain your answers.

c. What is the equilibrium price and quantity in this market?

d. Assume that the government imposes a price floor of $180 in the feeder market. What would happen in this market?

e. Assume that the price floor is removed and a price ceiling is imposed at $90. What would happen in this market?

f. 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.

g. Assume 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.

h. Assume 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.

i. Explain 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: EM13247817

Questions Cloud

What is the magnitude of the line voltage at the sending : A balanced three-phase distribution line has an impedance of 1+j8 I per phase. This line is used to supply 3 balanced three-phase loads that are connected in parallel. The 3 loads are L1= 120 kVA at 0.96 leading pf, L2= 180 kVA

How these concepts describe the benefits and costs : Circular flow diagram: Include the government sector in your explanation, a description of the roles that each participant plays in the economy, and how the different sectors interact in the markets.

Produce a model to predict employee satisfaction : What factors determine how happy workers are in their jobs and use the following data and multiple regression to produce a model to predict employee satisfaction

Design and implement a c program to simulate a game : design and implement a C++ program to simulate a game of Blackjack between two to four players. Your program must incorporate a two-dimensional array to represent the suit and the value of each card dealt to a player,

What is the equilibrium price and quantity in this market : Assume 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.

At what time does he reached the dock : Once a week a wagon driver leaves his hut and drives his wagon to the river dock to pick up supplies for his town. At 4:05 PM, one-fifth of the way to the dock, he passes the Temple. At 4:15 PM, one-third of the way, he passes the Preetam-Da-Dhaba..

What was coefficient of kinetic friction between box nd ramp : A box of mass 20kg is slid down a ramp inclined at 20 degree with an initial speed of 5 m/s. If the box stops after 10 m, what was the coefficient of kinetic friction between the box and the ramp

Marginal private cost exceeds marginal social cost : The output sold by a particular firm may be quite different from the output sold by the other firms in the market

Find the component of the force into the surface of roof : A 15 kg brick rests on a roof that is at an angle of 40Âº to the horizontal. What is the component of the force into the surface of the roof

User Account

All Pages