Purchase Solution

Drawing market graphs and calculating equilibrium

Not what you're looking for?

Ask Custom Question

1. Rochester Metro Area was hit with a major ice storm in 2003. Assume that before the ice storm of 2003, the weekly demand and supply for ice in the Rochester Metro Area were given by the following equations:

Dpre: P = 100 - Q
Spre: S = 5 + 0.5Q

a. Draw a graph representing the Rochester ice market before the storm, and label it carefully. What was the equilibrium price for the Rochester ice market before the storm? What was the total quantity of ice traded?

b. As a result of the ice storm, electricity went out in the Rochester area. The demand for ice increased due to the lack of electricity to power refrigerators. The lack of power also caused the supply to decrease. Ice producers were still able to produce some ice using electric generators. Other ice had to be imported from other areas with power. The relevant post storm equations are the following:

Dpost: P = 110 - Q
Spost: P = 10 + 2Q

Draw a graph representing the Rochester ice market after the storm, and label it carefully. What is the new equilibrium price? What is the quantity?

Purchase this Solution
Solution Summary

This solution shows how to use Microsoft Excel to draw graphs representing the ice market in the Rochester Metro Area before and after an ice storm, and to calculate the equilibrium price and quantity.

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Summer session Managerial Economics Week 5 Assignment

    Algebraically determine the market equilibrium price and equilibrium output combination. B. Use a graph to confirm your answer using Excel.

  • price floor or a price ceiling

    Whenever I have a problem with a price floor or ceiling, I always think of a drawing my Microeconomic Theory professor showed us. (See file attached "adamsmith"). The drawing shows four graphs, two with a price floor and two with a price ceiling.

  • long run adjustment process

    Draw graphs showing a perfectly competetive firm and industry in long-run equilibrium. (@) How do you know that the industry is in long run equilibrium? (b) Suppose that there is an increase in demand for this product?

  • Electricity: Magnitude of plate charge, speed of particle, electric potential difference

    an insulating thread and hangs between the plates of a capacitor (see the drawing).

  • supply/demand graphs

    291603 supply/demand graphs Use supply/demand graphs to analyze shifts in supply and demand and the resulting changes in market equilibrium in the situation below.

  • Short and Long Run equilibrium

    233010 Market Structure: Perfect Competition Draw graphs showing a perfectly competitive firm and industry in long-run equilibrium. a). How do you know that the industry is in long-run equilibrium? b).

  • Center of gravity and forces on foream

    Equations, diagrams, graphs and special characters will not appear correctly here.

  • Long run dynamics of a perfectly competitive industry.

    given a series of typical firm and market graphs demonstrate how the industry will adjust toward the long run equilibrium. I have attached the questions and graphs. Can you help me understand them.

  • Macroeconomics (Supply and Demand Analysis)

    181402 Macroeconomics (Supply and Demand Analysis) Supply and Demand Analysis. a) Illustrate the market for a good by drawing the industry's demand and supply curves. On the graph, identify the equilibrium price and the equilibrium quantity.

View More Related Solutions