Demand, Supply, Market Equilibrium a.Demand: i. Please Thoroughly and completely define demand. ii. Please state the law of demand. iii. List and thoroughly explain the 3 factors that support the law of demand. Be sure you explain how each actually supports the law of demand. iv. List and explain the determinants of demand and how each can cause an increase in demand and a decrease in demand. List and explain each of the 5 determinantsand how they impact demand.v. Thoroughly and completely explain the differences between a change in demand and a change in quantity demanded along with the causes of those changes, and how each change is graphically represented.b. Supply.       i.Define supply.       ii. State the law of supply.       iii. List and explain the determinants of supply and how each can cause an increase in supply and a decrease in supply.        iv. Thoroughly and completely explain the differences between a change in supply and a change in quantity supplied, the causes of those changes, and how each is graphically represented. c.Market equilibrium.        i. Please thoroughly and completely explain what market-clearing equilibrium means. Please be thorough.    ii. Thoroughly and in detail, explain what happens when a price is above the equilibrium price, and why those things happen!!! Detail!    iii. Thoroughly and in detail, explain what happens when a price is below the equilibrium price, and why those things happen!!! Detail!   iv. Thoroughly and completely explain the two government intervention cases, price floors and price ceilings and give examples of each.

Question
Asked Sep 27, 2019
4 views
  1. Demand, Supply, Market Equilibrium

a.Demand:

i. Please Thoroughly and completely define demand.

ii. Please state the law of demand.

iii. List and thoroughly explain the 3 factors that support the law of demand. Be sure you explain how each actually supports the law of demand.

iv. List and explain the determinants of demand and how each can cause an increase in demand and a decrease in demand.

List and explain each of the 5 determinants

and how they impact demand.

v. Thoroughly and completely explain the differences between a change in demand and a change in quantity demanded along with the causes of those changes, and how each change is graphically represented.

b. Supply.

       i.Define supply.

       ii. State the law of supply.

       iii. List and explain the determinants of supply and how each can cause an increase in supply and a decrease in supply.

       iv. Thoroughly and completely explain the differences between a change in supply and a change in quantity supplied, the causes of those changes, and how each is graphically represented.

c.Market equilibrium.

       i. Please thoroughly and completely explain what market-clearing equilibrium means.

 Please be thorough.

    ii. Thoroughly and in detail, explain what happens when a price is above the equilibrium price, and why those things happen!!! Detail!

   iii. Thoroughly and in detail, explain what happens when a price is below the equilibrium price, and why those things happen!!! Detail!

  iv. Thoroughly and completely explain the two government intervention cases, price floors and price ceilings and give examples of each.

 

check_circle

Expert Answer

Step 1

Hey, Thank you for the question. According to our policy we can only answer upto 3 subparts per session. If you need further help, post the question again and mention the number that you want us to solve.

Step 2

1ai)

Demand can be defined as the quantity of a good that the customers are able and willing to buy at different level of prices in a given period of time. A demand curve shows the relationship between the price and quantity demanded of the product/service.

Step 3

1aii)

The law of demand refers to the inverse relationship between price and quantity demanded (other factors remain constant). Alternatively, when the price of the goods and services rises then demand falls. While a fall in the price of a commodity leads...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Consider two neighboring island countries called Euphoria and Contente. They each have 4 million lab...

A: Euphoria can either produce 5 bushels of Rye or 20 pairs of jeans. In the time Euphoria produces 1 b...

question_answer

Q: The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the...

A: Here, it is given thatPoint E is the equilibrium point where the monopolist can generate maximum pro...

question_answer

Q: Supply and demand theory

A: Supply theory – According to the law of supply, the sellers will sell more of a good at the higher p...

question_answer

Q: Here’s a quick problem to test whether you really understand what producer surplus and consumer surp...

A: Consumer surplus: It is calculated by summing the area below the demand curve and above the price li...

question_answer

Q: What are examples of Geographic Indications intended to exclude producers from other regions from us...

A: The GI indicates an identity of the product as originating from a given place. This further denotes ...

question_answer

Q: Does the fact that your bank keeps only a fraction of your account balance in reserve worry you? Why...

A: Step 1The bank is a financial institution that focuses on accepting the deposit and making progress ...

question_answer

Q: Refer to the table below. If the six people listed in the table are the only consumers in the market...

A: Consumer surplus is the difference between the price that the consumer is willing to pay and the pri...

question_answer

Q: Draw and explain a production possibilities frontier for an economy that produces milk and cookies. ...

A: PPF (production possibility frontier) shows the different combinations of two goods which can be pro...

question_answer

Q: Victor is the manager of a local bank branch in College Station where he consumes bundles of two com...

A: The utility function is given as U(x, y) = xy. The MUx  and MUy can be written as;