Macro and Micro economics: supply and demand

  1. The table below illustrates the number of donuts each person is willing to buy each week depending on the price. (4 pts.)
PriceHomerCarlLenny
$0.50602017
$1.00501511
$1.5040105
  1. Choose one customer and draw their individual demand curve. Label the x-axis and the y-axis.
  • Draw the market demand curve for donuts, assuming these three customers are the only consumers in the market. Label the x-axis and the y-axis.
  • There are two companies that sell comic books in Springfield. The table below illustrates how many comic books each company would be willing to sell based on the price. (4 pts.)
PriceAndroid’s DungeonCoolsville Comics
$15150175
$25250225
$35350275
  1. Choose one company and draw their individual supply curve. Label the x-axis and the y-axis.
  • Draw the market supply curve for comic books in Springfield. Label the x-axis and y-axis.
  • The following graph represents the current market for skateboards. Assume that the local skatepark has been permanently closed. (4 pts.)
D0
Price
4,181
$110
S0
Quantity
Market for Skateboards
  1. Using the graph above, illustrate how the closing of the skatepark will affect the demand and/or supply curve(s) in the market for skateboards.
  • It takes a while for the price to adjust. Before the price changes, will there be a shortage or a surplus of skateboards in the market?
  • To correct the disequilibrium, will the price need to increase, or will it need to decrease? Or is the directional change in the price unknown?
  • Once the market reaches a new equilibrium, will the quantity of skateboards sold in the market be greater than or less than it was before the skatepark closed? Or is the directional change in quantity unknown?
  • The following graph represents the current market for saxophones, which are made of brass. Assume the price of brass decreased. (4 pts.)
D0
Price
4,198
$2,000
S0
Quantity
Market for Saxophones
  1. Using the graph above, illustrate how the change in the cost of brass will affect the demand and/or supply curve(s) in the market for saxophones.
  • It takes a while for the price to adjust. Before the price changes, will there be a shortage or surplus of saxophones in the market?
  • To correct the disequilibrium, will the price need increase, or will it need to decrease? Or is the directional change in price unknown?
  • Once the market reaches a new equilibrium, will the quantity of saxophones in the market be greater than or less than it was before the price of brass decreased? Or is the directional change in quantity unknown?
  • The following graph represents the market for necklaces with pearls. Assume the number of consumers decreases at the same time a few of the stores that sold necklaces with pearls went out of business. (3 pts.)
D0
Price
320
$742
S0
Quantity
Market for Necklaces with Pearls
  1. Using the graph above, illustrate how the changes will affect the demand and/or supply curve(s) in the market for necklaces with pearls.
  • Assume that once the market reaches a new equilibrium, the price of necklaces with pearls increased. Was the change in demand greater than or less than the change in supply?
  • At the new equilibrium, is the quantity of necklaces with pearls sold in the market greater than or less than it was before the changes? Or is the directional change unknown?
  • When Ralph’s income decreased, he bought more juice. Does he consider juice to be a normal good or an inferior good? (1 pt.)
  • The following graph represents the market for Squishees (a frozen carbonated drink). Assume the price of hotdogs, which is a complement to Squishees, decreased. Assume suppliers that sell Squishees also sell hotdogs. (4 pts.)
D0
Price
1990
$2.50
S0
Quantity
Market for Squishees
  1. Using the graph above, illustrate how the change in the price of hotdogs will affect the demand and/or supply curve(s) in the market for Squishees.
  • It takes a while for the price to adjust. Before the price changes, will there be a shortage or a surplus of Squishees in the market?
  • To correct the disequilibrium, will the price need to increase, or will it need to decrease? Or is the directional change in price unknown?
  • Assume that once the market reaches a new equilibrium, the quantity of Squishees sold in the market is greater than it was before the price of hotdogs decreased. Was the change in demand greater than or less than the change in supply?
  • Suppose that the price of disco music is currently $10 an album but is expected to increase next month. (6 pts.)
    • How does the expected change in price affect the demand of disco music today, or is the demand unaffected?
  • How does the expected change in price affect the supply of disco music today, or is the supply unaffected?
  • Does the expectation of the price change create a shortage or surplus in the market while the price is still $10? Or does the market remain in equilibrium?
  • To correct the disequilibrium, will the price need to increase or decrease? Or is the directional change in price unknown?
  • Assume that the change in demand is greater than the change in supply. Will this cause the quantity of disco music to be greater than or less than it was before the price changed? Or is the directional change in quantity unknown?
  • Assume that the change in supply is greater than the change in demand. Will this cause the quantity of disco music to be greater than or less than it was before the price changed? Or is the directional change in quantity unknown?

Bonus: If the price of a good decreases, what happens to the supply and demand curves? Briefly explain your answer. (2 pts.)

find the cost of your paper

Johanna applied for a job with Freedonia Publishing

Johanna applied for a job with Freedonia Publishing, a public company that oversees 7 newspapers across the United States. Upon receiving her job, Freedonia Publishing assigned her to a small….

Life As A Doctoral Student

Instructions: Read through these paragraphs from Pifer and Baker (2016). Write a 1-2-page, double-spaced essay in response to the prompts below. To present your strongest writing skills, do the following:….

Describe the proactive and reactive reasons that companies choose to go international

Question 1:  Describe the proactive and reactive reasons that companies choose to go international. Question 2:  If you owned a small business and wanted to go international, what country would….