Please graph and answer all :D
 

1. Consider the market for laptop computers. For each of the events fully draw and label a graph
identifying whether demand or supply is affected today, which way it shifts, and the impact on
equilibrium price and quantity (P↑↓, Q↑↓) (5 points each)
a. the price of lithium, which is used to make computer batteries, increases
b. the price of desktop computers, a substitute for laptops, increases
c. the buyers of laptop computers, expect a decrease in prices "tomorrow"
d. the sellers of laptop computers, expect an increase in prices "tomorrow"
e. the price of second monitors, a complement to laptop computers, decreases
 

2. Based on information you have, you believe the supply and demand curves for an individual market
are as follows (5 points each part of question):
Q = 800-10P
Q = 5P- 250
a. Graph these curves, show the intercepts of both the supply and demand curves with the axes (in
quadrant 1)
b. What are equilibrium price and quantity? Label these values on the graph.
c. What are the numeric values of consumer surplus, producer surplus, and total surplus?
d. What is the quantity demanded and quantity supplied if market price is $75? What would we expect
to happen to prices over time?
e. What is the quantity demanded and quantity supplied if market price is $60? What would we expect
to happen to prices over time?
f. Now envision that the demand curve is now equal to Q=1100-10P (complete parts a through e before
doing this). Plot this new curve on the same graph as part b, showing the new equilibrium price and
quantity.
g. Describe three causes that would cause the shift in demand seen in part f (like the scenarios used in
parts a-e of question 1)