ApEc 1101 HW #1 Fall 2015 - ApEc 1101 Principles of Microeconomics Fall 2015 Homework Assignment#1 Due 10 09 2015[submit to your TA in your discussion

ApEc 1101 HW #1 Fall 2015 - ApEc 1101 Principles of...

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ApEc 1101 Principles of Microeconomics Fall 2015 Homework Assignment #1 Due 10. 09. 2015 [submit to your TA in your discussion section] Answer the following questions on separate sheets of paper or in a blue book. Make sure your handwriting is legible and your graphs are clearly labeled . Each Question is worth 10 points. 1. In December, the price of Christmas trees sold rises and the quantity of trees sold rises. Does this violate the law of demand? Use graph[s] and verbal explanations to illustrate your answer. 2. Suppose market research reveals the following information about the market for Snickers chocolate bars. The demand schedule is represented by the following equation: 2400300DQP=, where DQis the quantity demanded and Pis the price. The supply schedule is represented by the following equation: 1400700SQP=+, where SQis the quantity supplied. Calculate the following: a. Derive the demand curve and supply curve. b. Determine the equilibrium price and quantity of snickers chocolate bars. c. Suppose a price floor of $3.00 is imposed on the market for snickers chocolate bars, what
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