Suppose that you decide to start a new business of making children’s ready-made garments.Make a (Hypothetical) linear supply schedule with 7 different price points and corresponding quantity supplied for your business.Make a graph showing equilibrium, shortage and surplus in the ready-made garments market. Give interpretation of this graph.Suppose cheap ready-made garments are imported from China. Draw a graph to show changes in equilibrium price and quantity for the Pakistani ready-made garments market. Give interpretation of this graph.Suppose that to boost the local industry, the Pakistani government gives subsidy on electricity prices. Draw a graph to show changes in equilibrium price and quantity. Give interpretation of this graph.Suppose that cheap cloth is imported from China for production of readymade garments and at the same time tourism in Pakistan increases bringing many more buyers of ready-made garments in the market. What will be impact on equilibrium price and quantity? Draw graphs to show impact. Interpret these graphs.

1. Price Quantity Demanded Quantity Supplied 20 4000 0 40 3400 400 60…

Answered: Suppose that you decide to start a new…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that you decide to start a new business of making children’s ready-made garments.

Make a (Hypothetical) linear supply schedule with 7 different price points and corresponding quantity supplied for your business.
Make a graph showing equilibrium, shortage and surplus in the ready-made garments market. Give interpretation of this graph.

Suppose cheap ready-made garments are imported from China. Draw a graph to show changes in equilibrium price and quantity for the Pakistani ready-made garments market. Give interpretation of this graph.

Suppose that to boost the local industry, the Pakistani government gives subsidy on electricity prices. Draw a graph to show changes in equilibrium price and quantity. Give interpretation of this graph.
Suppose that cheap cloth is imported from China for production of readymade garments and at the same time tourism in Pakistan increases bringing many more buyers of ready-made garments in the market. What will be impact on equilibrium price and quantity? Draw graphs to show impact. Interpret these graphs.

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