How are the laws of supply and demand illustrated in this


Supply and Demand Concepts

You have been hired by a new firm selling electronic dog feeders. Your client has asked you to gather some data on the supply and demand for the feeder, which is given below, and address several questions regarding the supply and demand for these feeders.

Price/Feeder     Quantity Demanded    Quantity Supplied
$300                     500                          1800
270                       600                          1700
240                       700                          1600
210                       800                          1500
180                       1000                         1400
150                       1100                         1300
120                       1200                         1200
90                         1300                         1100
60                         1400                         1000
30                         1500                         900
10                         1600                         800

Your client has asked that you develop a report addressing the following questions so that you can present these findings to their Board of Directors:

Questions:

Construct a graph showing supply and demand in the electronic dog feeder market, using Microsoft Excel.

How are the laws of supply and demand illustrated in this graph? Explain your answers.

What is the equilibrium price and quantity in this market?

Assume that the government imposes a price floor of $180 in the feeder market. What would happen in this market?

Assume that the price floor is removed and a price ceiling is imposed at $90. What would happen in this market?

Now, assume that the price of feeders drops by 50%. How would change impact the demand for feeders? Explain your answer and reconstruct the graph developed in question one to show this change.

Assume that incomes of the consumers in this market increases. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.

Assume that the number of sellers decreases in this market. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.

Explain the difference between a normal good and an inferior good. Would your answers to question 7 change depending on whether this good is a normal or inferior good? why?

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Microeconomics: How are the laws of supply and demand illustrated in this
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