SU_ECO2072_W1_A3_DUNN_K

SU_ECO2072_W1_A3_DUNN_K - Quantity Quantity Demande...

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Unformatted text preview: Quantity Quantity Demande Supplied d Price/Feed $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 Price QD $150 135 120 105 90 75 60 45 30 15 5 Supply and Demand $350 $300 $250 $200 $150 $100 $50 $0 400 600 1000 1200 Quantity Demanded 1400 1600 1800 20 2000 2 Quantity Supplied 50 % Drop Supply and Demand QS 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 800 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 $160 $140 $120 $100 $80 $60 $40 $20 $0 600 800 1000 1200 1400 Quantity Demanded Quantity Quantity Demande Supplied d Price/Feed $300 1800 800 270 1700 900 240 1600 1000 210 1500 1100 180 1400 1200 150 1300 1300 120 1200 1400 90 1100 1500 60 1000 1600 30 900 1700 1600 1800 Quantity Supplied Income Increase Supply and Demand $350 $300 $250 $200 $150 $100 $50 $0 600 800 1000 1200 Quantity Demanded 1400 1600 Quantity Supplied 1800 20 $100 $50 10 1800 800 $0 600 800 1000 1200 Quantity Demanded Price $150 135 120 105 90 75 60 45 30 15 5 Quantity Quantity Demande Supplied d 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 1400 1600 1800 20 1800 2 Quantity Supplied Decreased Sellers Supply and Demand $160 $140 $120 $100 $80 $60 $40 $20 $0 600 800 1000 1200 Quantity Demanded 1400 1600 Quantity Supplied Supply and demand of all products work closely together to determined the market's equilib and demand is the claim that the price of any good adjusts to bring the quantity supplied an demanded for that good in to balance (Mankiw, N. G. 01/2014). When the demand for a goo of that good decreases, visa versa. Same with the price, if the price is high the demand is low the demand is high. This table and graph to the left is a perfect illustration of the law of supp equilibrium price is $120 where the quantity demanded is 1200 and the quantity supplied is legal minimum on the price at which a good can be sold (Mankiw, N. G. 01/2014). If the gove a price floor of $180 per feeder, it would be a binding constraint on the market. This is becau above the equilibrium of $120 per feeder. This would cause a surplus making the quantity su quantity demanded. A price ceiling is a legal maximum on the price at which a good can be s 01/2014). If the government were to impose a price ceiling of $90 per feeder, the market wo Since the equilibrium is $120 and the price ceiling is $90, this would cause a binding constra Naturally the law of supply and demand would move the price toward an equilibrium, but b would cause mass shortages in the market. nd 400 1600 1800 2000 antity Supplied If the price of the feeders were to drop 50%, then the demand would increase with the sam supplied. This would move the equilibrium to $90 at which the quantity demanded is 1400 a supplied is 1400 as illustrated in the graph to the left. Demand 1600 1800 2000 2200 antity Supplied If the consumer's income were to increase that the demand for the feeders would increase w price remaining the same. This would move the equilibrium to $150 for 1300 demanded and illustrated in the graph to the left. nd Demand 1600 antity Supplied 1800 2000 1600 1800 2000 antity Supplied If the numbers of sellers were to decrease in the market then each seller would experience since the quantity supplied remains the same. The price would drop to make the price clos the equilibrium price. Which is $75 per feeder for 1300 demanded and 1300 supplied. nd Demand 1600 1800 2000 uantity Supplied An inferior good is a good for which other things being equal, an increase in income leads to demand. the demand for a good rises when income falls (Mankiw, N. G. (01/2014). An exam inferior good is public transportation. If one's income falls, one may use a bus everyday to sa But if one's income rises, one may choose to use their car instead. A normal good is a good other things being equal, an increase in income leads to an increase in demand. The deman falls when income falls (Mankiw, N. G. 01/2014). An example of a normal good is a luxuries c were get a promotion at work, they just might go out and buy them a new Cadillac. My answer to the above question number seven would change depending on if its a normal good. Depending on the good, it would determine the equilibrium price. References Mankiw, N. G. (01/2014). Principles of Economics, 7e, 7th Edition. [VitalSource Bookshelf On Retrieved from https://digitalbookshelf.southuniversity.edu/#/books/9781305217171/ termined the market's equilibrium. The law of supply bring the quantity supplied and the quantity ). When the demand for a good increases the supply price is high the demand is low. if the price is low then illustration of the law of supply and demand. the 0 and the quantity supplied is 1200. A price floor is a iw, N. G. 01/2014). If the government were to impose nt on the market. This is because the price floor is set urplus making the quantity supplied exceed the price at which a good can be sold (Mankiw, N. G. $90 per feeder, the market would change drastically. would cause a binding constraint on the market. toward an equilibrium, but by law it cannot. This would increase with the same amount of feeders quantity demanded is 1400 and the quantity r the feeders would increase with the suppled and $150 for 1300 demanded and 1300 supplied, as each seller would experience surplus d drop to make the price closer to nded and 1300 supplied. an increase in income leads to a decrease in kiw, N. G. (01/2014). An example of an e may use a bus everyday to save money. ead. A normal good is a good for which rease in demand. The demand for a good f a normal good is a luxuries car. If someone them a new Cadillac. e depending on if its a normal or inferior ium price. on. [VitalSource Bookshelf Online]. books/9781305217171/ ...
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