Explain how the laws of supply and


The use of E-Books has increased in recent years, especially with the advent of mobile E-Readers. A marketing research firm recently developed the following supply and demand schedules for E-books:

Price/E-Book

Quantity Demanded

Quantity Supplied

$18 4000 10,000

16 5000 9500

14 6000 9000

12 7000 8500

10 8000 8000

9 9000 7500

8 10000 7000

7 11000 6500

6 12000 6000

5 13000 5500

4 14000 5000

2 15000 4500

Assignment Guidelines:

Using Microsoft (MS) Excel, construct a graph showing supply and demand in the E-Book market based on the data above. When finished, copy and paste into an MS Word document.

In your MS Word document, below your imported graph, respond to the following:

Explain how the Laws of Supply and Demand are illustrated in this graph.

Define equilibrium. What is the equilibrium price and quantity in this market?

Assume that the government imposes a price floor of $12 in the E-Book market. Explain what would happen in this market.

Assume that the price floor is removed and a price ceiling is imposed at $6. Explain what would happen in this market.

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Microeconomics: Explain how the laws of supply and
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Anonymous user

4/5/2016 8:11:15 AM

The following task that has a marketing research firm and their price of E- book as shown below: The employ of E-Books has risen in recent years, especially by the advent of mobile E-Readers. A marketing research firm newly expanded the subsequent supply and demand schedules for E-books: Price/E-Book Quantity Demanded Quantity Supplied $18 4000 10,000 16 5000 9500 14 6000 9000 12 7000 8500 10 8000 8000 9 9000 7500 8 10000 7000 7 11000 6500 6 12000 6000 5 13000 5500 4 14000 5000 2 15000 4500