Supply and Demand
Not what you're looking for?
Assume there is a market for an industrial compound, Weon. This industrial compound is used as an input for the production of cleaning agents.
a. Draw a correctly labeled graph of supply and demand showing the equilibrium price and quantity. Also clearly identify the equilibrium in this market.
b. Suppose the manufacturing process for this industrial compound has been improved. Draw a correctly labeled graph showing this change in a supply and demand graph. Also explain what is going on and be sure to identify the new equilibrium price and quantity.
c. Suppose that the government decides to impose a price floor in this market for this industrial compound. Draw a correctly labeled graph showing this price floor.
d. Suppose that the government imposes a tax on this industrial compound. Draw a correctly labeled graph showing the effects of this tax on the price and quantity of this industrial compound.
Purchase this Solution
Solution Summary
The effects of this tax on the price and quantity of this industrial compound are embedded.
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.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.