Elslescontents116122 Home $300 500 1800 270 600 1700 240 700 1600 210 800 1500 180 1000 1400 150 1100 1300 120 1200 1200 80 80 1300 1100 60 1400 1000 30 30 1500 900 10 1600 800 w/d2/la/content/119122/Home $300 500 1800 270 600 1700 240 700 1600 210 800 1500 180 1000 1400 150 1100 1300 120 1200 1200 00 80 1300 1100 60 60 1400 1000 30 1500 900 10 1600 800
Elslescontents116122 Home $300 500 1800 270 600 1700 240 700 1600 210 800 1500 180 1000 1400 150 1100 1300 120 1200 1200 80 80 1300 1100 60 1400 1000 30 30 1500 900 10 1600 800 w/d2/la/content/119122/Home $300 500 1800 270 600 1700 240 700 1600 210 800 1500 180 1000 1400 150 1100 1300 120 1200 1200 00 80 1300 1100 60 60 1400 1000 30 1500 900 10 1600 800
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.1: Why Save?
Problem 6R
Related questions
Question
I have been hired by a new firm selling electronic dog feeders. Your client has asked you to gather some data on the supply and demand for the feeder, which is given below, and address several questions regarding the supply and demand for these feeders.
Price per Feeder: $300 270 240 210 180 150 120 80 60 30 10
Quantity Demanded: 600 700 800 1000 1100 1200 1300 1400 1500 1600
Quantity Supplied: 1700 1600 1500 1400 1300 1200 1100 1000 900 800
Your client has asked that you develop a report addressing the following questions so that you can present these findings to their Board of Directors:
Questions:
1. Construct a graph showing supply and demand in the electronic dog feeder market, using Microsoft Excel.
2. How are the laws of supply and demand illustrated in this graph? Explain your answers.
3. What is the equilibrium price and quantity in this market?
4. Assume that the government imposes a price floor of $180 in the feeder market. What would happen in this market?
5. Assume that the price floor is removed and a price ceiling is imposed at $90. What would happen in this market?
6. Now, assume that the price of feeders drops by 50%. How would this change impact the demand for feeders? Explain your answer and reconstruct the graph developed in question one to show this change.
7. Assume that incomes of the consumers in this market increases. What would happen in this market?
Explain your answer and reconstruct the graph developed in question one to show this change.
8. Assume that the number of sellers decreases in this market. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.
9. Explain the difference between a normal good and an inferior good. Would your answers to question 7 change depending on whether this good is a normal or inferior good? Why?
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Transcribed Image Text:w/d2/la/content/119122/Home
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