Q S₁ $2 7- In the figure to the right, what are the effects of a price increase from $4 per wireless earbud to $7 per wireless earbud on the quantities supplied by Supplier 1 and by Supplier 2 individually and combined? 1.) Using the line drawing tool, draw the market supply curve for the two suppliers. Label this line 'S.' 2.) Using the point drawing tool, indicate on Supplier 1's supply curve, S₁, the quantity supplied when the price is $4 per wireless earbud. Label this point 'A₁." 3.) Using the point drawing tool, indicate on Supplier 2's supply curve, S2, the quantity supplied when the price is $4 per wireless earbud. Label this point 'A2' 4.) Using the point drawing tool, indicate on the market supply curve for the two sellers, S, the quantity supplied when the price is $4 per wireless earbud. Label this point 'A.' Carefully follow the instructions above, and only draw the required objects. Price per Wireless Earbud ($) 8- 2- 1- 0+ 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Wireless Earbuds per Year (thousands)
Q S₁ $2 7- In the figure to the right, what are the effects of a price increase from $4 per wireless earbud to $7 per wireless earbud on the quantities supplied by Supplier 1 and by Supplier 2 individually and combined? 1.) Using the line drawing tool, draw the market supply curve for the two suppliers. Label this line 'S.' 2.) Using the point drawing tool, indicate on Supplier 1's supply curve, S₁, the quantity supplied when the price is $4 per wireless earbud. Label this point 'A₁." 3.) Using the point drawing tool, indicate on Supplier 2's supply curve, S2, the quantity supplied when the price is $4 per wireless earbud. Label this point 'A2' 4.) Using the point drawing tool, indicate on the market supply curve for the two sellers, S, the quantity supplied when the price is $4 per wireless earbud. Label this point 'A.' Carefully follow the instructions above, and only draw the required objects. Price per Wireless Earbud ($) 8- 2- 1- 0+ 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Wireless Earbuds per Year (thousands)
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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Transcribed Image Text:Q
S₁
$2
7-
In the figure to the right, what are the effects of a price increase from $4 per wireless earbud to $7 per
wireless earbud on the quantities supplied by Supplier 1 and by Supplier 2 individually and combined?
1.) Using the line drawing tool, draw the market supply curve for the two suppliers. Label this line 'S.'
2.) Using the point drawing tool, indicate on Supplier 1's supply curve, S₁, the quantity supplied when
the price is $4 per wireless earbud. Label this point 'A₁."
3.) Using the point drawing tool, indicate on Supplier 2's supply curve, S2, the quantity supplied when
the price is $4 per wireless earbud. Label this point 'A2'
4.) Using the point drawing tool, indicate on the market supply curve for the two sellers, S, the quantity
supplied when the price is $4 per wireless earbud. Label this point 'A.'
Carefully follow the instructions above, and only draw the required objects.
Price per Wireless Earbud ($)
8-
2-
1-
0+
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30
Wireless Earbuds per Year (thousands)
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