Reference no: EM133396051

Question: You are given the following information about the mid-size truck market in the USA, specifically the fictitious Mullins Trucking Corporation, Inc. in Rochester, NY. The graph you are about to construct will appear as the 4th graph in your presentation to the Mullins Board of Directors as they try to get a handle on the supply and demand for their products. This is copyrighted material

From 2010--2015, the prices of their best-selling mid-size trucks, measured in $10,000's of US Dollars, was: 85, 75, 65, 55, 45, 35, 25, and 10. During that time, the corresponding amounts that the Mullins Corporation was willing to sell at those same prices, measured in 100,000s of mid-size trucks was: 9, 8, 7, 6, 5, 4, 3, and 2. Meanwhile, the amount that consumers were willing to purchase at those same prices, also measured in 100,000s of units, was: 3, 4, 5, 6, 7, 8, 9, and 10. The production data was retrieved from various hard copy annual reports of the Mullins Corporation while the consumer data was retrieved from Truckers Digest, in an article written by Rick Trombett, in their March 2022 issue, pages 49-53, "How Many Trucks Can One Firm Produce and Sell." This is copyrighted material From 2016-2021, there was some change in that market. The Mullins Corporation is not exactly clear on all that occurred in the market, but they know the following. Their customers seemed willing to purchase more trucks; specifically, 2.0 more units at each and every price point compared to what they were willing to purchase in 2010-2015. Of course, the Mullins Corporation increased its production; specifically, a production level increase of 3.0 units at each and every price point they were willing to sell as compared to 2010-2015. This is copyrighted material

a. In one clearly constructed, legible, and properly labeled graph created using Excel, construct the supply and demand curves that correspond to 2010-2015 and those from 2016-2021.

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b. Referencing the curves constructed in part A, clearly state the equilibrium price and quantity in the two different time periods (2010-2015 and 2016-2021). (1.5 pts). This is copyrighted material

c. Using your supply and demand analytical skills, and referencing only the curves constructed in part A, offer one reason why the price and quantity are different in the 2nd time period as compared to the first. (Hint: For this, we do not want to know why the curves may have shifted, but how their shifting resulted in that particular answer.) (6 pts). This is copyrighted material

d. Assume that in the 2nd time period, there was only a change in demand. What would the equilibrium price and quantity be now?. This is copyrighted material

e. Again, assume in the 2nd time period there was only a change in demand. Using your knowledge of the determinants of supply and demand, and referencing only the curves in part A, offer one concrete cause as to why that demand may have moved in the direction it did.