Assignment 1 Fall 2023 This assignment is out of 30 marks and is worth 15% of your final mark. Learning Outcomes The learner will be able to: analyze a market in terms of demand and supply and establish equilibrium accurately graph and label the demand and supply curves for a market determine what will shift demand and supply calculate and identify the impact of elasticity of demand in a market create and interpret a production possibility curve Submission Instructions 1. Answer the questions below, with all questions clearly labelled, in order. 2. Submit only one Word document. 3. Do not include the questions, only your answers. 4. Include a cover page with your name, student number, course name and assignment name. 5. PDF and Excel documents are not acceptable and will not be marked 6. Submit the assignment using the assignment submission function only by the due date in the Critical Path. 7. This assignment must be completed individually. It is not a group project. The assignment will be automatically submitted to SafeAssign for verification that no plagiarism or copying has occurred. If SafeAssign does identify copying, the assignment will receive 0, and an Academic Misconduct Report will be filed. 8. To submit your assignment: Follow the instructions in the assignment link. Emailed assignments will not be marked. Note: You must name your file using your first name, last name, and the number of the assignment. For example, "tom.jones1.doc" for Tom Jones assignment 1. Marks will be deducted if you do not follow all instructions. Q ASUSInstructions Answer the following questions. To do so. I expect you to read Chapters 1, 2 and 3 in our textbook. No research from the internet is required. Please submit your answers in ONE Word document with all your answers labelled and in the correct order. Insert your graphs into the Word document Excel and PDF files will not be accepted. Question 1 (5 marks) We are examining the market for leather jackets in Ontario. Given below are the demand schedule and supply schedule for this product for one year. Accurately graph the demand and supply curves on one graph and determine equilibrium in this market Label the graph and axises properly. State where equilibrium is (both price and quantity). don't just point to it on the graph. Make sure you have the price and quantity demanded on the correct axis. (5 marks - 4 marks for graph and 1 mark for equilibrium) The easiest way to create the graph is to create it in Excel, and then copy and paste it over to the Word document. You can also hand draw the graph and copy it over if you forget how to use Excel. Price Quantity Price Quantity Demanded Supplied $160 150.000 $160 50,000 $250 325,000 $325 $250 75,000 285,000 $500 $325 125,000 245,000 $700 $500 160,000 205,000 $700 205,000 $950 175.000 $950 $1,200 100,000 300,000 $1.200 450,000 $1.500 55,000 $1,500 625,000 Question 2 (2 marks) Explain, in your own words, two factors that could shift supply in the market for leather jackets. Provide an example for each and state whether supply would shift up or down. Question 3 (2 marks) Animal rights activists are campaigning to discourage the use of leather in clothing. Explain, in your own words, what will happen to the demand curve for leather jackets in Ontario. That is, will the demand curve move up, move down, remain the same or will demand just move along the curve? What will be the immediate impact on supply? What will happen to equilibrium (price and quantity)?Assignment 1 Fall 2023 Question 4 (3 marks) lustrate, using a graph, the impact on the market of animal rights activists campaign against sing leather in clothing (Question 2). You do not need to invent numbers. Just make sure | ow what happens in the market and that your graph is properly labeled (axises, old demand and supply lines, new demand lines and supply lines). Clearly identify the old equilibrium and the new equilibrium. Question 5 (2 marks) Explain the difference between demand shifting and demand merely moving along the curve. Provide an original example of each (other than the example in Question 2). Question 6 (5 marks) a. Using the data provided in Question 1, calculate the elasticity of demand and elasticity of supply at each price change in the market for leather jackets using the midpoint formula for both supply and demand. Calculate elasticity to 2 decimal places. Because you are calculating the change between two levels, you will have 7 calculations for demand and 7 for supply, for the 8 prices. (2 marks - 1 mark each for correct demand and correct supply elasticities) Price Quantity Elasticity of Quantity Elasticity of Demanded Demand Supplied Supply $160 450,000 50,000 1250 325,000 75,000 3525 285.000 125,000 $500 245,000 160.000 $700 205,000 205,000 5950 175,000 300,000 $1,200 100 080 450,000 1,500 35 000 525.000 Based on your elasticity of demand calculation, if the price of down-filled jackets rises from $325 to $500 will total revenue go up or down? Explain using the concept of elasticity. You need to answer the first part of this question by explaining how you nterpreted the elasticity of demand at this point. How much will revenue change (in dollar terms)? (2 marks - 1 mark for calculation, one mark for explanation using elasticity) What is the pope elasticity of supply if the price rises from $326 to $8007 Is it inelastic or elastic7 indicate? (1 mark)Assignment 1 Fall 2023 Question 7 (4 marks) The chart below represents the production possibilities for a company that produces tables and chairs. a. Create a properly labeled graph representing the company's combination of choices for these two products. (1 1/2 marks) b. Using the letter "U' indicate on the graph unattainable combinations. (1/2 mark) c. Using the letter 'A', indicate on the graph the attainable but inefficient (1/2 mark) d. Using the letter 'F indicate the combinations that are both attainable and efficient. (1/2 mark) e. What is the law of increasing opportunity costs? Explain and provide an example not in the textbook. (1 mark) Tables Chairs | 2.125,000 95,000 | 1,850,000 125,000 | 1,500,000 150,000 | 1,000,000 180,000 800,000 200,000 700,000 225,000 Question 8 (3 marks) According to the textbook, in what three ways does human specialization contribute to society's output? Explain each, and provide a unique example for each. Do not use the examples in the textbook. (1 mark each) Question 9 (4 marks) According to our textbook economists classify economic resources into four general categories What are they? Name them and provide a unique example for each, one that s not in the textbook. (1 mark each) Searel