Question

Borrow a pen if you r do the not graph have and one. to answer questions Question 1: (15 points) b Dupply: S bel c) Equilibrium price: Pi d) Equiibrium quantity: Q Use the data in the table below to construct a properly labeled graph for Product A showing: (make the graph large enough to add new lines) a) Supply: Si b) Demand: Di (5 points for this part of the graph) PriceQuantity Demanded Quantity Supplied $ 1 $ 2 $ 3 $ 4 $ 5 20 16 12 10 On the same graph, add a line that illustrates an increase in demand. Label it D. Label the new equilibrium price P2 and quantity Qa. (2) State one possible cause for the increase in demand for Product A. (3) Describe what would happen in the Product A market if the government put an excise tax on production? (3) Change the graph (do not draw a new one) to illustrate and show the new after tax equilibrium, Ps and Qs (2) e) f) g) h) Bonus: 2pts Label and shade in the dead weight loss.

Answer 1