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Hypothetical demand and supply curve for a restaurant dinner

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Think of a product that you will buy more of if its price goes up. To which category does this product belong? Provide reasons for your answer. Develop a demand curve for it. Also show the condition of market equilibrium for these categories of goods.

Compare the demand curve of these goods with the goods that you will buy more of if the price comes down.

Create demand and supply curves in Microsoft Excel and create a Microsoft Word document to present the analysis based on the curves.

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Solution Summary

This solution creates demand and supply curves in Excel and presents an analysis based on the curves.

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See the attached file for an example of a hypothetical demand and supply curve for a restaurant dinner. To do this, just create an equation for demand based on price, such as 10-2P. People will buy less of this product as the price increases, as indicated by the negative sign. Then create a supply curve such as -20+3P. Restaurants will make more dinners the more they can charge as indicated by the positive sign. Now create a column of price and let excel calculate the quantity demanded and supplied at each price. Excel will also create a scatter ...

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