Illustrate the following with supply and/or demand curves:
a. The federal government "supports" the price of wheat by paying farmers not to plant wheat on some of
their land.
b. An increase in the price of chicken has an impact on the price of hamburger.
c. Incomes rise, shifting the demand for gasoline. Crude oil prices rise, shifting the supply of gasoline. At the new equilibrium, the quantity of gasoline sold is less than it was before. (Crude oil is used to produce gasoline.)

Solution Summary

This solution shows three events that affect the demand and supply curves and market equilibrium

SupplyandDemand Analysis.
a) Illustrate the market for a good by drawing the industry's demandandsupplycurves. On the graph, identify the equilibrium price and the equilibrium quantity. Be sure to label all axes andcurves.
b). If the market price is less than the equilibrium price, what is the relationship of quant

Suppose the marketdemand for pizza is given by Qd=300-20p and the marketsupply for pizza given by Qs=20p-100, where P=price (per pizza).
Graph the supplyanddemand schedule for pizza using $5 through $15 as the value of p. In equilibrium, how many pizzas would be sold at what price?

Consider the market for milk. For each of the following events, state (a) whether it affects supply or demand (or both, or neither), (b) which direction supply/demand shifts, (c) the effect on price, and (d) the effect on quantity.
1. The price of orange juice, a substitute, rises.
2. In order to support dairy farmers, the g

1) A product's Demand Curve is: Qd = - P + 25, and its Supply Curve is: Qs = 10 + 2P.
Algebraically determine the equilibrium price and quantity.
2. The figure below shows a firm in a perfectly competitive market:
a. Determine the Shut- down Price
b. Identify the firmâ??s short run

Purpose of Assignment -
The purpose of this assignment is to analyze how an event will influence the marketequilibrium.
Background: Suppose the weather in Florida was extremely cold one winter. This event would affect the market for coffee in Florida, causing the demand curve to shift to the right. Remember an event that c

The demandandsupplycurves for T-shirts in LA, Ca, are given by the following equations:
Q= 24,000 - 500P Q= 6,000 + 1,000P
where P is measured in $ and Q is the number of T-shirts sold per year.
a. Find the equilibrium price and quantity algebraically.
b. If the tourists decide they do not really like T-shirts

Given the following demandandsupply equations:
Demand: Q=100 - 5P
Supply: Q=20P
1. What is the equilibrium price?
2. What is the equilibrium quantity?
3. Using Excel and prices in the range of $1 to $10, generate the demandandsupply schedules for the initial equations.
4. Use Excel to plot a graph of your

Draw supplyanddemand diagrams for market A for each of the following. Use these diagrams to determine how each of the following changes in demandand/or supply affect equilibrium price andequilibrium quantity. ( This is a competitive market.) Your answer should state whether price and quantity rise, fall, or remain unchange