The demand curve facing a price-taking firm esoro is one of more than a hundred competitive price-taking firms in San Francisco that produce extra-large cardboard boxes for moving. The llowing graph shows the daily market demand and supply curves facing the extra-large cardboard box industry. 50 45 Supply 40 Demand 35 30 25 20 15 10 0 1 2 3 4 56 QUANTITY OF OUTPUT (Millions of extra-large boxes) 9. 10 PRICE (Dollars per extra-large box)

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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**Homework (Ch 08)**

*Instruction:*

On the following graph, use the green line (triangle symbol) to plot the demand curve for Vesoro’s extra-large cardboard boxes. *(Hint: Remember that perfectly competitive firms must accept the given market price.)*

**Graph Explanation:**

The graph is titled "PRICE (Dollars per extra-large box)" on the vertical axis and "QUANTITY OF OUTPUT (Thousands of extra-large boxes)" on the horizontal axis. The scale on the vertical axis ranges from 0 to 50, marked at intervals of 5. The horizontal axis ranges from 0 to 10, marked at intervals of 1.

The task requires plotting the demand curve using a green line to represent the acceptance of market price by perfectly competitive firms.

Please proceed by drawing the demand curve as instructed.
Transcribed Image Text:**MindTap - Cengage Learning** **Homework (Ch 08)** *Instruction:* On the following graph, use the green line (triangle symbol) to plot the demand curve for Vesoro’s extra-large cardboard boxes. *(Hint: Remember that perfectly competitive firms must accept the given market price.)* **Graph Explanation:** The graph is titled "PRICE (Dollars per extra-large box)" on the vertical axis and "QUANTITY OF OUTPUT (Thousands of extra-large boxes)" on the horizontal axis. The scale on the vertical axis ranges from 0 to 50, marked at intervals of 5. The horizontal axis ranges from 0 to 10, marked at intervals of 1. The task requires plotting the demand curve using a green line to represent the acceptance of market price by perfectly competitive firms. Please proceed by drawing the demand curve as instructed.
**Homework (Ch 08)**

**2. The demand curve facing a price-taking firm**

Vesoro is one of more than a hundred competitive price-taking firms in San Francisco that produce extra-large cardboard boxes for moving. The following graph shows the daily market demand and supply curves facing the extra-large cardboard box industry.

**Graph Explanation**:

- **Axes**: The x-axis represents the quantity of output (in millions of extra-large boxes), ranging from 0 to 10. The y-axis represents price (dollars per box), ranging from 0 to 45.
  
- **Curves**:
  - **Demand Curve (orange)**: This downward-sloping curve illustrates the relationship between price and the quantity demanded by consumers. As the price decreases, the quantity demanded increases.
  - **Supply Curve (blue)**: This upward-sloping curve shows the relationship between price and the quantity supplied by producers. As the price increases, the quantity supplied also increases.
  
- **Equilibrium Point**: The intersection of the demand and supply curves indicates the market equilibrium, where the quantity of output demanded equals the quantity supplied.
Transcribed Image Text:**Homework (Ch 08)** **2. The demand curve facing a price-taking firm** Vesoro is one of more than a hundred competitive price-taking firms in San Francisco that produce extra-large cardboard boxes for moving. The following graph shows the daily market demand and supply curves facing the extra-large cardboard box industry. **Graph Explanation**: - **Axes**: The x-axis represents the quantity of output (in millions of extra-large boxes), ranging from 0 to 10. The y-axis represents price (dollars per box), ranging from 0 to 45. - **Curves**: - **Demand Curve (orange)**: This downward-sloping curve illustrates the relationship between price and the quantity demanded by consumers. As the price decreases, the quantity demanded increases. - **Supply Curve (blue)**: This upward-sloping curve shows the relationship between price and the quantity supplied by producers. As the price increases, the quantity supplied also increases. - **Equilibrium Point**: The intersection of the demand and supply curves indicates the market equilibrium, where the quantity of output demanded equals the quantity supplied.
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