The supply and demand model forms the basis of much microeconomic analysis. It combines information about buyers’ preferences for purchasing products or services with information about the sellers’ willingness to supply them. In market-based economies, it is the interaction between buyers and sellers, as illustrated in the demand and supply model, that determines equilibrium prices and output.
For this Assignment, you will apply the concepts of the supply and demand model by explaining aspects of buyer behavior, seller behavior, shifts and movements along the demand curve, and market equilibrium. You will also calculate the cross elasticity of demand and describe the effects of government intervention in markets.
To prepare for this Assignment:
Review this week’s Learning Resources.
Refer to the Week 1 Optional Resources on graphing if you need additional support to complete this Assignment.
Refer to the Academic Writing Expectations for 1000-Level Courses as you compose your Assignment.
By Day 7
Submit your responses to the following prompts.
Over the past 10–20 years, the use of landline phones has fallen while the use of cell phones and smartphones has increased. Explain how changes in consumer tastes and preferences are affecting the demand functions for each product. Draw graphs for each of the two products (landlines and cell phones/smartphones) illustrating what has happened to the demand curve for each one. Your response should be at least 75 words (1 paragraph) in length; include graphs to support your explanations.
Explain why the law of demand is not violated when you observe the quantity demanded of ice cream cones at your local park is lower in December than in July even though the price is higher in July than it is in December. Your response should be at least 75 words (1 paragraph) in length.
This week, Super-Save Supermarket lowered the price of apples from $1 to 90 cents per pound. The quantity of apples sold last week was 200 pounds. This week, the quantity sold was 250 pounds. Calculate the price elasticity of demand. Is it elastic, inelastic, or unitary elastic? What happens to total revenue? Your response should be at least 75 words (1 paragraph) in length.
Using the information given in the previous question, assume that last week Super-Save Supermarket sold 150 pounds of bananas and this week it sold 120 pounds of bananas. Are bananas and apples complements or substitutes? What is the cross elasticity of demand? Explain your answer. Your response should be at least 75 words (1 paragraph) in length.
Farmer Brown plants both soybeans and corn. If the price of soybeans increases and the price of corn remains the same, what do you expect to happen to the amount of acreage that he devotes to planting each crop? How does your answer help to explain the law of supply? Does the supply curve of corn or soybeans shift? Use graphs to illustrate your answer. Your response should be at least 75–150 words (1–2 paragraphs) in length, including graphs with explanations.
Amy’s Diner and Joe’s Burger Stop are located in the same neighborhood. Both have similar menus that include hamburgers, french fries, and soft drinks. Assume Amy’s supplier raises the price of hamburger meat, while Joe’s does not. Using the supply and demand model, graphically show and provide a written explanation for each of the following:
The equilibrium price and quantity of hamburgers Amy sold
The equilibrium price and quantity of french fries Amy sold
The equilibrium price and quantity of hamburgers Joe sold
The equilibrium price and quantity of soft drinks Joe sold
Your response should be at least 150–225 words (2–3 paragraphs) in length, including graphs.
In the United States, price floors are commonly used to support farmers, such as for dairy products. Assume several U.S. trading partners impose tariffs on dairy products exported from the United States. The tariffs are effective and are reducing dairy exports from the United States and have pushed the domestic equilibrium price of milk below the price floor.Using a supply and demand model, illustrate what happens to the U.S. domestic price of milk, quantity of milk sold in the United States, and any surplus or shortage of milk. Be sure to support your graph with a written explanation.Your response should be at least 75–150 words (1–2 paragraphs) in length, including the graph and explanation.
QUALITY: 100% ORIGINAL – NO PLAGIARISM
(USA, AUS, UK & CA PhD. Writers)
CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS
About Our Service
We are an online academic writing company that connects talented freelance writers with students in need of their services. Unlike other writing companies, our team is made up of native English speakers from countries such as the USA, UK, Canada, Australia, Ireland, and New Zealand.
Qualified Writers
- At ClassicWritersBay.com, most of our writers are degree-holding native speakers of English who are familiar with various writing styles. Our writers are proficient in many fields, including Economics, Business, Accounting, Finance, Medicine, Chemistry, Literature, Mathematics, Statistics, and many others.
- Making our customers happy is an important part of our service. So do not be surprised if you get your paper well before the deadline!
- We pay a lot of attention to ensuring that you get excellent customer service. You can contact our Customer Support Representatives 24/7. When you order from us, you can even track the progress of your paper as it is being written!
- We are attentive to the needs of our customers. Therefore, we follow all your instructions carefully so that you can get the best paper possible.
- It matters to us who writes for you, and we are serious about selecting the best candidates.
- Our writers are always learning something new, so they are familiar with the latest developments in the scientific world and can write papers with updated information and the latest findings.
Our Guarantees:
- Quality original papers that follow your instructions carefully.
- On time delivery – you get the paper before the specified deadline.
- Attentive Customer Support Representatives available 24/7.
- Complete confidentiality – we do not share you details or papers with anybody else.
