Group project "Elasticity" - Project 6 From ECON-221-5891 This is a group discussion and a group project. You were randomly divided into groups of 6-7 students, and you will do one submission per group. This is a relatively low stakes assignment, but I will also include very similar questions on a test or a quiz later. Please introduce yourselves to the others in your group first. Discuss the questions below, choose a way that works best for you to communicate. For example, you may want to meet in Zoom, or use google drive, or just use the discussion board. Initial post with introducion due Tuesday, November 8. Final submission is due Monday, November 14. Please agree on who will submit the final answers, 1 need only one person to submit. Please submit the final answers at the end of the discussion, as a post with title 'Final Submission' and names of the people who contributed. Please use 'upload image' button to include the graph with your post. The Questions. Suppose that over the past ten years market equilibrium price of Kona coffee increased by 20% and the total number of pounds of Kona coffee sold on the market (equilibrium quantity) increased by 5%. 1. Which one could cause the change in the market equilibrium: increase in supply, increase in demand, decrease in supply, decrease in demand? (Choose one) (1 points) 2. Draw a graph with original supply, demand and equilibrium. Then show the shift that occurred, show new supply or demand (depending on your answer to parts 1) and the new equilibrium, mark old equilibrium as A and the new equilibrium as B. (8 points) 3. Can you calculate price elasticity of demand for Kona coffee using points A and B (from part 2)? If yes, calculate it. (1 points) 4. Can you calculate price elasticity of supply using points A and B ? If yes, calculate it. (1 points) 5. If you cannot calculate one of the elasticities, please explain why. (4 points) Group project "Elasticity" - Project 6 From ECON-221-5891 This is a group discussion and a group project. You were randomly divided into groups of 6-7 students, and you will do one submission per group. This is a relatively low stakes assignment, but I will also include very similar questions on a test or a quiz later. Please introduce yourselves to the others in your group first. Discuss the questions below, choose a way that works best for you to communicate. For example, you may want to meet in Zoom, or use google drive, or just use the discussion board. Initial post with introducion due Tuesday, November 8. Final submission is due Monday, November 14. Please agree on who will submit the final answers, 1 need only one person to submit. Please submit the final answers at the end of the discussion, as a post with title 'Final Submission' and names of the people who contributed. Please use 'upload image' button to include the graph with your post. The Questions. Suppose that over the past ten years market equilibrium price of Kona coffee increased by 20% and the total number of pounds of Kona coffee sold on the market (equilibrium quantity) increased by 5%. 1. Which one could cause the change in the market equilibrium: increase in supply, increase in demand, decrease in supply, decrease in demand? (Choose one) (1 points) 2. Draw a graph with original supply, demand and equilibrium. Then show the shift that occurred, show new supply or demand (depending on your answer to parts 1) and the new equilibrium, mark old equilibrium as A and the new equilibrium as B. (8 points) 3. Can you calculate price elasticity of demand for Kona coffee using points A and B (from part 2)? If yes, calculate it. (1 points) 4. Can you calculate price elasticity of supply using points A and B ? If yes, calculate it. (1 points) 5. If you cannot calculate one of the elasticities, please explain why. (4 points)
