To Explanation: The questions based on the following situations. Although he was a prolific artist, Pablo Picasso painted only 1,000 canvases during his “blue Period” Picasso is now dead, and all of his Blue Period works are currently on display in museums and private galleries throughout Europe and the U.S. Draw a supply curve for Picasso Blue Period works. Why is this supply curve different from once you have seen? Given the supply curve from part, the price of a Picasso Blue Period work will be entirely dependent on what factors (s) ? Draw a diagram showing how the equilibrium price of such a work is determined. Suppose rich art collectors decide that is essential to acquire Picasso Blue Period art for their collections. Show the impact of this on the market for these paintings. Concept Introduction: Demand: The demand is defined as the ability to pay for goods and services. Supply: The supply is the ability of the seller to produce the goods and services and sell it at the prevailing price Equilibrium price: The equilibrium price is at which the demand and supply are equal

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Chapter 3, Problem 17P

To determine

To Explanation:

The questions based on the following situations.

Although he was a prolific artist, Pablo Picasso painted only 1,000 canvases during his “blue Period” Picasso is now dead, and all of his Blue Period works are currently on display in museums and private galleries throughout Europe and the U.S.

Draw a supply curve for Picasso Blue Period works. Why is this supply curve different from once you have seen?

Given the supply curve from part, the price of a Picasso Blue Period work will be entirely dependent on what factors (s) ? Draw a diagram showing how the equilibrium price of such a work is determined.

Suppose rich art collectors decide that is essential to acquire Picasso Blue Period art for their collections. Show the impact of this on the market for these paintings.

Concept Introduction:

Demand: The demand is defined as the ability to pay for goods and services.

Supply: The supply is the ability of the seller to produce the goods and services and sell it at the prevailing price

Equilibrium price: The equilibrium price is at which the demand and supply are equal

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