Answer A- H please a) Draw a Supply Curve and the Demand Curve for the Sugar...

Answer A- H please

a) Draw a Supply Curve and the Demand Curve for the Sugar

Label the supply S1 and the demand D1. Label on the vertical axis P for the equilibrium price and label the horizontal axis Q for the equilibrium quantity.

We currently have the sugar market in equilibrium at a price of $3 per pound and 100,000 pounds.

Now assume that the state government just announced a new price floor program for the sale of sugar.

Under this program, a price floor for sugar will be set at 20% above the current market equilibrium price of sugar.

We also know that the Es of sugar is 1.20 and that the Ed for sugar is 0.80.

Now, given this information, answer the following questions.

b) State the dollar amount of the price floor and label on your graph PF for Price Floor.

c) Using the Definition Formula for Elasticity of Supply or Es (found in the lectures for Chapter 6) determine the number for the new Quantity Supplied after the price floor is imposed. Please show how you got your answer.

d) Label the new Quantity Supplied on your graph as Qs along the horizontal axis.

e) Using the Definition Formula for Elasticity of Demand or Ed (found in the lectures for Chapter 5) determine the number for the new Quantity Demanded after the price floor is imposed. Please show how you got your answer.

f) Label the new Quantity Demanded on your graph as Qd along the horizontal axis.

g) Please determine the market situation we now have after the price floor was imposed. Use numbers in your answer.

h) Explain now what will happen in this market starting from the situation you stated in (g) above.

Solutions

Expert Solution

Rahul Sunny answered 10 months ago

Next > < Previous

Related Solutions

Answer A-I please (a) Draw a Supply Curve and the Demand Curve for the US Auto...

Answer A-I please (a) Draw a Supply Curve and the Demand Curve for the US Auto market. Label the supply S1 and the demand D1. Label the vertical axis P for Price and label the horizontal axis Q for Quantity of Milk. Label on the vertical axis the equilibrium price as P1. Label on the horizontal axis the equilibrium quantity as Q1. Assume now that a tariff of 25% is placed on on all steel and aluminum that is imported...

Draw a supply and demand diagram for the market for food. (a) If the Supply curve...

Draw a supply and demand diagram for the market for food. (a) If the Supply curve is perfectly elastic, what happens to price and quantity when demand shifts? (b) If the Demand curve is perfectly inelastic, what happens to price and quantity when supply shifts?

1. Please draw a supply and demand diagram for the “Market for Pasta” and answer the...

1. Please draw a supply and demand diagram for the “Market for Pasta” and answer the following questions (Label all axes and curves). a. Assume pasta and red wine are Complements. Furthermore, suppose the price of red wine increases. Illustrate the effect of the price change on the Demand Curve for Pasta. b. Additionally, there is a (positive) technological improvement in pasta production. Illustrate the effect of the new technology on the Supply Curve for Pasta. c. How do the...

PLEASE COMPLETE ON WORD 1) DRAW & EXPLAIN the current supply and demand curve for any...

PLEASE COMPLETE ON WORD 1) DRAW & EXPLAIN the current supply and demand curve for any given product ex .draw the supply and demand for Nike shoes 2) DRAW & EXPLAIN at least 10 SEPERATE examples of various determinants that will effect Supply and any shift that occurs in the equilibrium - say what the determinant is, how it will affect supply or demand, and then draw the shift in supply or demand. ex. Draw explain why wages might increase for...

Please draw a supply and demand diagram for the “Market for Tom Jones Records” and answer...

Please draw a supply and demand diagram for the “Market for Tom Jones Records” and answer the following questions (Label all axes and curves). a. Assume Tom Jones records and wine are complements. Additionally, the price of wine decreases. Illustrate the effect of the price change on the Demand Curve for Tom Jones records. b. Furthermore, the government enacts a Tom Jones tax (on the supply side). In other words, suppliers of Tom Jones records must now pay a tax...

Draw a supply and a demand curve and label the market equilibrium on the axes with...

Draw a supply and a demand curve and label the market equilibrium on the axes with P1 and Q1. Illustrate the effect of an increase in demand on price and quantity. Label the new equilibrium values on the axes with P2 and Q2. In your own words and in detail explain the market adjustment leading to the new equilibrium. Show the relevant elements of your explanation in the graph

Draw a supply and a demand curve and label the market equilibrium on the axes with...

Draw a supply and a demand curve and label the market equilibrium on the axes with P1 and Q1. In the same graph, show the effects of an increase in supply and an increase in demand on price and quantity. Label the new equilibrium values on the axes with P2 and Q2. Add one more curve – either for supply or demand demand – to your graph and show that the effect of a simultaneous increase in supply and demand...

Please answer all the ten questions. Question 10 A demand or supply curve with ______________ would...

Please answer all the ten questions. Question 10 A demand or supply curve with ______________ would be vertical in appearance. Group of answer choices zero elasticity middle elasticity infinite elasticity unitary elasticity Question 11 Jean has $50 per week in her entertainment budget. She splits her time between going to the movies and yoga classes. Each movie costs $10 while each yoga class costs $5. The total utility from each of these activities is set out in the table below....

Draw a steep labor supply curve and a less steep labor demand curve on a set...

Draw a steep labor supply curve and a less steep labor demand curve on a set of axes. Now suppose demand decreases. Label the old and new equilibria. Draw a cobwebbing path to show how wages and quantities of labor evolved to get from the old equilibrium to the new equilibrium.

a. Draw a perfectly competitive firm's labor demand curve and labor supply curve. Label the market...

a. Draw a perfectly competitive firm's labor demand curve and labor supply curve. Label the market equilibrium wage rate and quantity of labor the firm will hire. Label your graph completely. b.Draw the demand and supply curves for labor in a perfectly competitive labor market. Label the equilibrium wage rate and equilibrium quantity of labor. Label your graph completely.

Subjects