a. Suppose the market demand for shirts is given by Qd = 300 - 20P and the market supply for shirts is given by Qs = 20P - 100, where P = price (per shirt). Graph the supply and demand schedules for shirts between price = $5 through to $15 (increase in units of 1, i.e. 5, 6, 7...). Using the equations provided, in equilibrium, how many shirts would be sold and at what price? What would happen if suppliers set the price of shirts at $15? Explain the market adjustment process. ii. iii.
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- Suppose the market demand for shirts is given by Qd = 300 – 20P and the market supply for shirts is given by Qs = 20P – 100, where P = price (per shirt). i. Graph the supply and demand schedules for shirts between price = $5 through to $15 (increase in units of 1, i.e. 5, 6, 7…). ii. Using the equations provided, in equilibrium, how many shirts would be sold and at what price? iii. What would happen if suppliers set the price of shirts at $15? Explain the market adjustment process.Suppose that Felix and Janet are the only suppliers of iced lattes in some hypothetical market. Their monthly supply schedules are given by the following table: Price (Dollars per cup) 1 PRICE (Dolars per cup) N 2 0 3 4 5 Felix's Quantity Supplied Janet's Quantity Supplied (Cups) (Cups) 0 5 4 On the following graph, plot Felix's supply of iced lattes using the green points (triangle symbol). Next, plot Janet's supply of iced lattes using the purple points (diamond symbol). Finally, plot the market supply of iced lattes using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. ? 8 6 7 8 12 40 16 QUANTITY (Cups) 9 12 14 15 8 4 Felix's Supply $ Janet's Supply Market SupplySuppose the market demand for a cup of cappuccino is given by Qp = 24-4P and the market supply for a cup of cappuccino is given by Qs = 8P - 12, where P = price (per cup). Graph the supply and demand schedules for cappuccino. 1.) Using the line drawing tool, draw the demand curve for cappuccino. Label your line 'D'. 2.) Using the line drawing tool, draw the supply curve for cappuccino. Label your line 'S'. 3.) Using the point drawing tool, plot the equilibrium price and quantity. Label your point 'E'. Carefully follow the instructions above and only draw the required objects. Price per cup ($) 10.50- 웅 9.00- 7.50 6.00 4.50 3.00+ 1.50- 3 Market for Cappuccino 6 9 12 15 Cups of cappuccino 18 21 24
- There has been explosive growth in the demand for the green leafy vegetable kale in recent years as consumers learned of its health benefits. The demand curve has shifted significantly rightward. However, the price of a bunch of kale in the grocery store has been fairly stable. Draw a supply and demand diagram showing the market for kale, and show how the price of kale could remain stable in the face of such an enormous growth in demand. 1.) please plot the new supply and demand curves on a diagram and label the lines properly. 2.) please also indicate the new equilibrium point at the same price as the original equilibrium and label it.1. A) Suppose that the demand for milk increases because a new beauty treatment is discovered that uses milk. Analyze the effects of this change on the equilibrium for milk and the equilibrium for cookies by thinking about the diagrams. B) Now to convince yourself that your graphical answer is right, consider the following supply and demand equations for milk and cookies. Qd M = 40 – 2PM – PC Qd C = 40 – 2PC – PM Qs M = PM Qs C = PC i) Solve for the equilibrium prices and quantities. ii) Now suppose that the demand for milk increases so that the demand for milk is given by Qd M= 80 – 2PM – PC. Solve for the new equilibrium prices and quantities of milk and cookies.Question 1 Suppose Ms. Zeenia demands 150 units of ice cream at price 50, if the price tends to increase to 60 she reduced her demand by 30 units while a further increase in the price by 10 rupees led to the reduction in the quantity demanded to 90 units ceteris paribus. Given the information above drive the demand function. Now suppose the price of milk has increased, illustrates graphically if there would be any change in the demand function elucidated in part a. Also, explain why or why not? Question 2 Keeping the present rate of inflation (increase in the general price level) in mind, consumers living in Karachi are anticipating that the price of tomatoes will go up just like it did last year in November. In your opinion explain if there would be any impact on…
- The market for many goods changes in predictable ways according to the time of year, in response to events such as holidays, vacation times, seasonal changes in production, and so on. Specify the shift in supply and/or demand curves in the graph to account for the change in price in the following case. The price of a round-trip ticket to Paris on Air France falls by more than $200 after the end of school vacation in September. This happens despite the fact that generally worsening weather increases the cost of operating flights to Paris, and Air France, therefore, reduces the number of flights to Paris at any given price. demand shifts to the left, supply shifts to the left, shift in supply is bigger. demand shifts to the left, supply shifts to the left, shift in demand is bigger. demand shifts to the right, supply shifts to the right, shift in demand is bigger. demand shifts to the right, supply shifts to the right, shift in supply is bigger,The following table shows the weekly demand and supply in the market for ice cream in Detroit. dy Tools Price Quantity Demanded Quantity Supplied (Dollars per gallon of ice cream) (Gallons of ice cream) (Gallons of ice cream) 4 2,000 200 Tips 1,600 600 12 1,200 800 Tips 16 800 1,200 20 400 1,800 כ On the following graph, plot the demand for ice cream ușing the blue point (circle symbol). Next, plot the supply of ice cream using the orange point (square symbol). Finally, use the black point (plus symbol) to indicate the equilibrium price and quantity in the market for ice cream. g Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 24 Demand 20 16 Supply 12 MacBook Air per gallon of ice cream)PRICE (Dollars per cup) Suppose that Brian and Crystal are the only suppliers of iced lattes in some hypothetical market. Their monthly supply schedules are given by the following table: Price (Dollars per cup) Brian's Quantity Supplied Crystal's Quantity Supplied (Cups) (Cups) 1 0 3 2 4 6 3 6 8 4 7 10 5 8 11 On the following graph, plot Brian's supply of iced lattes using the green points (triangle symbol). Next, plot Crystal's supply of iced lattes using the purple points (diamond symbol). Finally, plot the market supply of iced lattes using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. 5 0 0 4 8 12 16 20 24 QUANTITY (Cups) Brian's Supply Crystal's Supply --- Market Supply
- es The graph below shows the market for oats. Price per bushel 12 11 10 9 8 10 432 S 4 0 10 50 70 100¹10120 30 90 80 60 40 20 Quantity per period (in millions of bushels) S Tools Sz Prev 4 of 8 # Next >The figure depicts the market for gasoline. Suppose that consumers expect the price of gasoline to decrease in the future. What effect will this event have supply and demand in the gasoline market? Demonstrate your answer graphically Instructions: Use the tool provided 'New line' to draw either a new demand or supply curve that reflects the market effect of this event. Plot only the endpoints of the line.This problem involves solving demand and supply equations together to determine price and quantity. a. Consider a demand curve of the form QD=-2P+20, where QD is the quantity demanded of a good and P is the price of the good. Graph this demand curve. Also draw a graph of the supply curve Qs =2P-4, where Qs is the quantity supplied. Be sure to put P on the vertical axis and Q on the horizontal axis. Assume that all the Qs and Ps are nonnegative for parts a, b, and c. At what values of P and Q do these curves intersect-that is, where does QD = Qs ? b. Now, suppose at each price that individuals demand four more units of output-that the demand curve shifts to QD - 2P+24. Graph this new demand curve. At what values of P and Q does the new demand curve intersect the old supply curve-that is, where does QD = Qs ? c. Now finally, suppose the supply curve shifts to Q's=2P-8. Graph this new supply curve. At what values of P and Q does QD=Q's? Show all working calculations and label garph with…