a) As the computers are becoming cheaper and cheaper to produce and the demand for them are growing it will have an indeterminate affect on the price but the quantity of the computer will increase. Increase in the supply will decrease the price and increase in the demand will increase the price. the net change in the price will depend on the absolute change in the supply and demand. Increase in the supply will shift the demand curve to the right and increase in the demand will shift the demand curve to the right. in both the cases the quantity will increase.
b) As the supply is inelastic its curve will be a vertical line and the demand will be downward sloping. If the demand increased the demand curve will shift upward, increasing the price. Here, the demand curve shifted form D to D1 and the price increased from P to P* leaving the supply unchanged.
2. Discuss the impact on the equilibrium price and quantity and illustrate it with a graph....
2. For each of the following, find the market equilibrium price and quantity (a) Let Q,-3P-20 and Qa 40-2P. (b) Let Q, -6P and Qa 40 2P. 3. For each of the following, draw the effects of the shocks on a supply and demand graph. What happens to the equilibrium price and quantity in each of the scenarios? (a) Suppose that, due to the rising popularity of Moscow Mules, demand for copper mugs his risen. At the same time, due...
Find the equilibrium price and quantity given the following equations and graph this situation. Qs = 10 + 2P Qd = 30 – 12P Also, illustrate what happens above equilibrium and below the equilibrium The drought in the plains states has made grain, and therefore feed, quite expensive. Many ranchers cannot afford to feed their cattle, and have sold much of their herd for slaughter. What will be the immediate effect of this event on the equilibrium price and quantity...
The following graph shows the market for pianos in 2008. Between 2008 and 2009, the equilibrium quantity of pianos remained constant, but the equilibrium price of pianos increased. From this, you can conclude that between 2008 and 2009, the supply of pianos _______ and the demand for pianos _______ . Adjust the graph to illustrate your answer by showing the positions of the supply and demand curves in 2009. The second group of students attributes the increase in the price of cheeseburgers...
Show on a supply and demand graph the impact of the following on the equilibrium price (P*) and quantity (Q*) in the market for Dell laptops. [You will be asked to upload your graphs at the end. The price of Microsoft laptops increases for consumers and at the same time Dell is mandated by law to increase wages of its workers. [Select] Shift in demand .What factor caused the shift? [Select] [Select] Shift in supply What factor caused the shift?...
14. A supply and demand puzzle The following graph shows the market for cars in 2007. Between 2007 and 2008, the equilibrium price of quantity of cars increased. From this, you can conclude that between 2007 and 2008, the supply of cars _______ and the demand for cars _______ .Adjust the graph to illustrate your answer by showing the positions of the supply and demand curves in 2008.
Graphically illustrate the impact of the decrease in the quantity demanded on the equilibrium price and quantity of a good or service.
Show on a supply and demand graph the impact of the following on the equilibrium price (P') and quantity (Q*) in the market for Dell laptops. [You will be asked to upload your graphs at the end.) The price of Microsoft laptops increases for consumers and at the same time Dell is mandated by law to increase wages of its workers. Shift in demand (Select] '. What factor caused the shift? [Select ] Shift in supply [Select] '. What factor...
a. On a graph, show the supply and demand for oil. Indicate the equilibrium price and quantity. Is this quantity efficient? b. On a new graph of the market for oil, show what will happen to the equilibrium price and quantity if a vast new oil field is discovered off the coast of Australia. c. On another graph, show what will happen in the market for oil if a new electric car is invented which is cheaper, faster and cooler...
This problem involves solving demand and supply equations to determine equilibrium Price and Quantity and then illustrating them graphically.Consider a demand curve of the form : QD= -3P + 45 where QD is the quantity demanded and P is the price of the good.The supply curve for the same good is: QS= P-5 where QS is the quantity supplied at price, P. Solve for equilibrium Price (P*) and Quantity (Q*). Please set up the problem and underline your answers below....
A supply and demand puzzleThe following graph shows the market for laptops in 2007 . Between 2007 and 2008, the equilibrium price of laptops remained constant, but the equilibrium quantity of laptops increased. From this, you can conclude that between 2007 and 2008, the supply of laptops _______ and the demand for laptops _______ Adjust the graph to illustrate your answer by showing the positions of the supply and demand curves in 2008 .Note: Select and drag one or both of...