Supply and Demand and Price

Disregard the new tax from number three. Now assume the government imposes a price ceiling of $100 in this market, as the result of protest of price gouging by sellers. What would happen to the price and quantity in this market?

A price ceiling set below the equilibrium price means that the quantity supplied ____ the quantity demanded so that a ____ exists.

Sport utility vehicles increase in popularity, thus increasing the demand for the workers who make them.

| An oligopolist that faces a kinked demand curve is charging price P = 6. Demand for an increase in price is Q = 280  40P and demand for a decrease in price is Q = 100  10P. Over what range of marginal cost would the optimal price remain unchanged?Answer

c. Suppose the market price is $5. What problem would exist in the market? Does it lead to surplus or shortage? How do you expect this problem will affect the price? Indicate this on the supply and demand graphs.

We use multiple products on a daily basis, from toothpaste to ink pens. Though we may use these items for mere moments, there is a different supply and demand cycle for them. Every product has a different supply and demand cycle, and this cycle varies throughout time. Some items may constantly be in demand, like cotton, and others may be in demand seasonally, like eggnog. These shifts in supply and demand may influence the price of certain products, how much of the product is available at any given time, etc. Commodities available during only peak times throughout the year may even be substituted with a similar item. These seasonal items are considered

III-2 18) In what ways can economists help auto manufacturers estimate the marginal rate of substitution between features such as vehicle interior size and acceleration?

(Key Question) Cite three examples of recent decisions that you made in which you, at least implicitly, weighed marginal costs and marginal benefits.

Companies also look at future price expectations when deciding how much to supply. If economists predict that prices will increase in the future, it benefits the company to withhold some of the supply. Walt Disney Films does this with their VHS/DVD collections. They keep their movies in a ‘vault’ and re-release them every few years. Disney has created demand for their product due to the limited release and availability of their product. Companies should increase production when they can charge more for their product, as they can lose money if they are slow to respond to demand.

In figure 3.4, what are the implications if the price of this product is $8?

In economics supply and demand refers to the relationship between the accessibility of a good or service and the need or wish for it amid buyers (Microsoft, 2009). Our daily lives are affected by supply and demand. Demand is based on the price of a product, the price of related products, and customer’s salary and preference. Supply can rest not only on the price available for the product but also on the cost of similar products, the method of how it is made, and the availability and price of contributions. In this specific case I will explain how supply and demand has affected my decision to purchase a home (The Free Dictionary, n.d.).

This article is about the elevate in gasoline in wakes of Hurricanes Harvey and Irma. Given the way winds and floods shut down oil rigs, batter refineries and disrupt pipelines, there was minute chance that Florida’s energy infrastructure would elude the wrath of these natural disasters. Are these elevates in price just the beginning of a rise in gasoline prices until repairs are consummated or a replication to price gouging? For some economics this remains to be unseen. The laws of supply and demand have yet to assert themselves in the hardest hit areas of Florida and Texas.

Equilibrium is important when it comes to not only maintain a successful business but to also maintain a successful economy in general. This determines the efficiency of the goods at a certain point. There are different factors that go into equilibrium such as supply and demand where the curves determine the cost to the consumer as well as the cost to supplier. Different costs of taxes, benefits of international trade, and externalities all go into how to maintain the supply and demand, and why it is so desirable

Group members Nguyen Dat Anh Ho Ngoc Son Nguyen Thai Ha Nguyen Thi Huyen Trang Luyen Trung Kien

b. If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking one year from now or 5 years from now ? 5 years from now because people cannot easily decrease their consumption of cigarettes. Therefore they have to decrease smoking gradually until they stop smoking.