par in Mart 20 1 $ 335 1 HO 4 18 10 1 6 1 10 11) 100 104 -25 Out in 10 DE . . X 40 7 10 11 11 DE SE 125 Ton SP C 38 25 39 4 ENE 35 11 19 0 100 50 TE 0 30 12 USE 40 TE 19 30 31 18 21 0 AD 10 GEL 14 21 24 Egg 54 310 OS 300 18 110 28 2 20 16 32 26 27 10 1.30 140 11! 1 4 Supply and Demand graph 3000 30 Consumer Surplus 1800 1682 1568 1458 1352 1250 1152 1058 96 882 800 722 15 10 QUAY Excess/shortage graph 10 578 512 450 392 318 288 242 200 5 0 5 10 5 30 5 10 128 72 50 32 18 8 2 00 4) (12 points) Answer the following questions about your market model: a. (3 points) Explain in words why the supply is negative at low prices, 0 at a price of 4, and increasing thereafter. Explain in words why the demand is 0 at a price of 31 and why the curve is sloping downward. Where is market equilibrium (both price and quantity)? How do you know? b. (3 points) When price is 15 do we have an excess or a shortage situation? Why is that? c. (6 points) Suppose that over time demand has changed such that the parameters of the demand function are now c=142 and d=-4. Solve the new market equilibrium price and quantity. Insert a graph of supply and both demand curves into your final document. what Explain happened well economically I mathematically/graphically. as as par in Mart 20 1 $ 335 1 HO 4 18 10 1 6 1 10 11) 100 104 -25 Out in 10 DE . . X 40 7 10 11 11 DE SE 125 Ton SP C 38 25 39 4 ENE 35 11 19 0 100 50 TE 0 30 12 USE 40 TE 19 30 31 18 21 0 AD 10 GEL 14 21 24 Egg 54 310 OS 300 18 110 28 2 20 16 32 26 27 10 1.30 140 11! 1 4 Supply and Demand graph 3000 30 Consumer Surplus 1800 1682 1568 1458 1352 1250 1152 1058 96 882 800 722 15 10 QUAY Excess/shortage graph 10 578 512 450 392 318 288 242 200 5 0 5 10 5 30 5 10 128 72 50 32 18 8 2 00 4) (12 points) Answer the following questions about your market model: a. (3 points) Explain in words why the supply is negative at low prices, 0 at a price of 4, and increasing thereafter. Explain in words why the demand is 0 at a price of 31 and why the curve is sloping downward. Where is market equilibrium (both price and quantity)? How do you know? b. (3 points) When price is 15 do we have an excess or a shortage situation? Why is that? c. (6 points) Suppose that over time demand has changed such that the parameters of the demand function are now c=142 and d=-4. Solve the new market equilibrium price and quantity. Insert a graph of supply and both demand curves into your final document. what Explain happened well economically I mathematically/graphically. as as
