Question
*Qu. 9 Consider the supply and demand for the cleaning services in your suburb for next month. a. Draw a supply and demand diagram for
*Qu. 9 Consider the supply and demand for the cleaning services in your suburb for next month.
a. Draw a supply and demand diagram for the market for cleaning services in your suburb for this month with an equilibrium price of $30 per hour and equilibrium quantity 2000 hours of cleaning.
b. Illustrate and explain what happens if the price of cleaning was fixed at $20 per hour.
c. If the price was not fixed, but customers and cleaners allowed to charge whatever they like, what would happen to quantity of cleaning services demanded and supplied in the market this month.
d. If the price is not fixed and next month the incomes of households in your suburb increase, illustrate and explain the effect on demand and/or supply. What will happen to the price of cleaning and the amount of paid cleaning hours next month?
I'm really stuck, please help me :( it's due tonight
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