This website uses cookies to ensure you have the best experience. Learn more

Supply, Demand, And Government In The Markets

813 words - 4 pages

Module 1_Assignment 3
Assignment 3: Supply, Demand, & Government in the Markets

1. Using Microsoft Excel, draw a graph illustrating the supply and demand in this market.

2. What is the equilibrium Price and Quantity in the market?
This is where the quantity demanded and the quantity supplied are equal. The corresponding price is the equilibrium price and the quantity is the equilibrium quantity.

*Let us take the first line of data from the Spreadsheet as an example:
Price- $200 Quantity Demanded- 1000 Quantity Supplied- 2200
Here there is an excess supply amount, so there are more computers than that are actually wanted. At this point, the sellers would recognize there are ...view middle of the document...

4. 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 is a government-levied maximum rate for a product or good. When a price ceiling inflicted by the government is more than retail equilibrium price, the price ceiling has no effect on the market or economy. This is because it does not obstruct supply, nor does it boost the demand. A different effect transpires if the government imposes a price ceiling below the market’s equilibrium rate. The suppliers will no longer be capable of charging the price that the market mandates, but they are required to meet the maximum price determined by the government’s price ceiling. When the demand rises beyond the capability to supply, shortages ensue. This leads to rationing of the product, causing some consumers to experience longer lines to obtain the product. In a worse case, there would be no products available for the consumer to buy.

5. Assume that the manufacturers of this product lobby the government’s lawmakers, in terms of this product being essential for college students but they are considering halting production due to the lack of profits. The lawmaker’s agree and now set a price...

Other Essays Like Supply, Demand, and Government in the Markets

Supply and Demand Simulation Essay

968 words - 4 pages aggregate supply (AS) and aggregate demand (AD) and the shifts in supply and demand that impact surplus, shortages, and revenue. The primary goals are to maximize revenue and reduce vacancies through cause analysis followed by adjusting rental rates accordingly to compensate for shifts in the market (TATA, n.d.). Changes in AS/AD The aggregate supply (AS) is the economy’s gross production of goods and services to meet the total aggregate demand

Supply and Demand Simulation Essay

901 words - 4 pages Supply and Demand Simulation Justin Valence ECO 365 Mar 18, 2013 Roger Hinds Supply and Demand Simulation Microeconomics affect everyday lives in ways we do not necessarily see. Take for example the supply and demand simulation. This simulation was a good way to determine first hand how certain circumstances change the supply and demand and how it affects prices of two-bedroom apartments. Circumstances such as inflation, unemployment

Supply and Demand Simulation

832 words - 4 pages Supply and Demand Simulation This paper discusses the Applying Supply and Demand Concepts simulation from the student website. First, it seeks to identify two microeconomic principles and two macroeconomic concepts presented in the simulation with explanations why they are categorized as macro or microeconomic. It also identifies one shift of the supply curve and one shift of the demand curve and the shifts’ cause. Additionally, impact on

Supply and Demand Simulation - 1302 words

1302 words - 6 pages Supply and Demand Simulation ECO/365 Principles of Microeconomics Abstract Atlantis is a small and well maintained city. Positive aspects about living in this city include large parks, jogging paths, and maintained streets and sidewalks. When a person is deciding to move into the city of Atlantis or move around within the city, two bedroom apartments become one of many places to look for housing. GoodLife Management is a company who

Supply and Demand

2169 words - 9 pages subsidies. The government has proposed putting a tax on fast food in order to curb obesity. As such, consumers may decide that the extra tax is not worth the convenience of fast food and as such there are fewer people who purchase the goods resulting in an increase in supply due to a decrease in demand (Healy, 2009). The next determinant of supply is expectations. Fast food restaurants expect that there will be demand for their product. As fast

Eco365 Supply and Demand

730 words - 3 pages shifts in the supply and demand curve. A good understanding of the concepts of microeconomics allows us to understand the factors that affect shifts in supply and demand on the prices and quantities. After reading the chapters and completing the stimulation, a better understanding of the supply and demand should be accomplished. The demand and supply in the city of Atlantis had a curve of a downward slope and which the quantity increases as

Supply And Demand

726 words - 3 pages Microeconomics and the Laws of Supply and Demand Introduction of Micro and Macro Economics Microeconomics and macroeconomics are used in order to help economists come to conclusions and the economy of a city, state, and country. Microeconomics is the study of the economic decisions and actions of individual people and companies according to the Merriam-Webster dictionary (Merriam-Webster, 2014). This practice is the study of economics on a

Supply and Demand

1103 words - 5 pages pounds per person on a boneless equivalent basis” (para. 2). The writer will investigate the trends in consumption patterns, which include the utility derived from meat, changes in demand, market prices and the elasticity of demand for meat. Economics, the law of supply and demand, and discuss factors that lead to a change in supply and demand will also be discussed. Economics is defined by Merriam-Webster Online as “a social science concerned

Supply and Demand Simulation - 731 words

731 words - 3 pages In the subject of macroeconomics and microeconomics, supply and demand is a crucial conception. The fictional apartment complex and the management company, located in the fictitious city of Atlantis and the economic effects related to supply and demand. These factors include equilibrium as well as supply and demand. The concepts in macroeconomics can also be classified as price ceilings and price elasticity because of the impact on the economy

Supply and Demand Paper

826 words - 4 pages Supply and Demand Paper I have chosen to write about the purchase of a new home for this paper. For most people, buying a home is one of the biggest things they do in their lives. The purchase of a home is something that takes careful consideration and thought. Most first-time home buyers do not realize how many factors go into determining the price of a house. There are so many more things involved than just the asking price. Closing costs

Supply and Demand Paper

853 words - 4 pages The good I have chosen for this supply and demand paper is buying a new car. I just bought a brand new 2012 Honda Accord LX from the Crystal lake, Illinois Honda dealer. I traded in my old 1999 Honda Accord EX which had 195000 miles on it. I had bought that car new as well from the Honda dealer. I was going to get my old car fixed but it would have cost me 2000.00 the Honda dealer said. They suggested I buy a new one and I was promised a

Related Papers

The Impact Of Changes In Supply, Demand, And Pricing

813 words - 4 pages Generally we are affected by changes in our environment in many different ways. People reactions to those almost any change will vary. With the increased technology we have become accustom to products which provide us with convince, and often feel they are necessary for us to maintain existence. Sudden changes in supply and demand and pricing could lead us to analyze our need for a particular product or service, and consider using alternative

Microeconomics And The Laws Of Supply Demand

588 words - 3 pages Microeconomics and the laws of supply demand ECO/365 Supply and Demand Simulation Since the early years of commerce, supply and demand have been a huge factor in the capitalist business system. For this assignment I was asked to take part in a simulation as a source for my paper. In the simulation I had to take part of a series of important financial decisions for a fictitious apartment management company named GoodLife and see how each

The Demand And Supply Of Oil

1282 words - 6 pages Q1. How do the demand and supply of oil behave differently in the long run and the short run? In the short run, the demand and supply of oil is inelastic. So even if the prices increase the demand does not change too much. The reason for this is the time period given to consumers to respond to the change in price. Since it’s the short run, it obviously means that people cannot immediately change their lifestyle and find suitable

Supply And Demand Simulation Essay 752 Words

752 words - 4 pages . Narrowing the focus on microeconomics is the basic concept of supply and demand in the individual markets. To understand the supply and demand concept, one must understand that the supply and demand concept is the center or the back of the market economy. An example of supply and demand comes from a supply and demand simulation. The supply and demand simulation concerns itself with managing rental apartments through a fictitious property management