BECN 150 Assignment 1 Summer 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 and supply in a market create and interpret a production possibility curve Discuss price ceilings and floors Discuss economic theory This is an individual assignment that you work on independently. Any work that you did not do yourself will be treated as Academic Misconduct under Humber's Academic Policy. You will immediately receive 0 on the assignment and an Academic Misconduct Report will be filed. Submission Instructions 1. 2. 3. 4. Include a cover page with your name, student number, course name and NP\" Complete the exercises below, answering all questions. Submit only one Word document with all your answers labelled and in the correct order. Do not include the questions, only your answers. assignment name. When providing references, you must cite all references using the APA format. You can find the information for creating citations and references under Getting Started, Copyright for Students, then the Humber Libraries Website link in the course. Not identifying sources is considered academic misconduct PDF and Excel documents are not acceptable and will receive 0. Submit the assignment using the assignment submission function only. The assignment is automatically submitted to SafeAssign, which checks for plagiarism and copying. 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 Emailed assignments will not be marked. The assignment is due on the date specified on the Critical Path. Late submissions will lose 10% a day, and will not be accepted after 7 days. Marks will be deducted it you do not follow all instructions. Question 1 (5 marks) We are examining the market for Tshirts 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 (m 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. (4 marks for accurate graph and 1 mark for equilibrium) Price Quantity Price Quantity Demanded Supplied 1 ,600,000 350.000 1 ,475,000 525,000 1 ,400,000 650,000 1 275,000 750,000 825,000 825,000 650,000 985,000 385.000 1,165,000 200.000 1 385,000 Question 2 (4 marks) a. Name and explain two factors that w00|d shift demand for the product from Question 1. Provide an original example, not one from the textbook. (2 marks) b. Name and explain two factors that would shift supply for the product from Question 1. Provide an original example, not one from the textbook. (2 marks) Question 3 (3 marks) Illustrate one of your examples from Question 2 by drawing the impact on the market in a correctly labeled graph. You do not need to invent numbers. Just make sure I know what happens in the market and that the graph is properly labeled. Clearly identify the old equilibrium and the new equilibrium and explain which example you are illustrating. (3 marks 1 mark for correct graph, 1 mark for correct change, 1 mark for identifying new E.) Question 4 (4 marks) The chart below represents the production possibilities for a company that produces ereaders and tablets. a. Create a properly labeled graph representing the company's combination of choices for these two products. (1.5 marks) b. Using the letter 'U' indicate on the graph unattainable combinations. (1/2 mark) Using the letter 'A', indicate on the graph the attainable but inefficient. (112 mark) Using the letter 'F' indicate the combinations that are both attainable and efficient. (1/2 mark) e. At what point should the company set production? (1 mark) 9.0 Production Possibility Curve Tablets Ereaders 265000 222000 100000 190000 156000 165000 165000 135000 190000 125000 225000 350000 Question 5 (8 marks) a. Using the data found in Question 1, calculate (to 2 decimal places) the elasticity of demand and elasticity of supply at each price change in the market for gold picture frames using the midpoint formula for both supply and demand. 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) m Quantity Elasticity of Quantity Elasticity of Demanded Demand Su - - lied Su- ul -$:0 1 ,,600 000 350,000 1,475,000 525,000 1 ,,400 000 650,000 -:4: 1 ,275, 000. 750,000 - 825, 000. 825,000 - 650,000 985,000 385,000 1 ,165,000 200,000 1 ,385,000 b. Based on your elasticity of demand calculation, if the price of Tshirts rises from $42 to $50 will total revenue go up or down? Explain. You need to answer the first part of this question by explaining how you interpreted 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 c. What is the price elasticity of supply if the price rises from $42 to $50? Is it inelastic or elastic? What does this indicate? (2 marks) d. Explain the difference between price elasticity of supply in the short run and price elasticity of supply in the long run. Provide an example of each (not in the textbook). (2 marks, 1/2 mark for each, 1/2 mark for each example) Question 6 (3 marks) What three virtues of the market system does our textbook emphasize? Explain each and provide specific examples of each (not just what is in the textbook). (1 mark each) Question 7 (3 marks) Assume the government has set a price floor of $4.50 for a loaf of sour dough bread. The equilibrium price in the market is $3.85. Will this create a shortage or a surplus of sour dough bread in the market? Explain why, and draw a graph that illustrates the market given the price floor