Assignment 3: Supply and Demand ConceptsYou have been hired by a new firm selling electronic dog feeders.
Your client has asked you to gather some data on the supply and demand for the
feeder which is given below and address several questions regarding the
supply and demand for these feeders. Price/FeederQuantity DemandedQuantity Supplied$300 500 1800 270 600 1700 240 7001600 210 8001500 180 1000 1400 150 1100 1300 120 1200 1200 90 1300 1100 60 1400 1000 30 1500 900 10 1600 800 Your client has asked that you develop a report addressing the
following questions so that you can present these findings to their Board of
Directors:Questions:1.
Construct a graph showing supply and demand in the electronic dog
feeder market using Microsoft Excel. 2.
How are the laws of supply and demand illustrated in this graph?
Explain your answers. 3.
What is the equilibrium price and quantity in this market? 4.
Assume that the government imposes a price floor of $180 in the
feeder market. What would happen in this market? 5.
Assume that the price floor is removed and a price ceiling is
imposed at $90. What would happen in this market? 6.
Now assume that the price of feeders drops by 50%. How would this
change impact the demand for feeders? Explain your answer and reconstruct the
graph developed in question one to show this change. 7.
Assume that incomes of the consumers in this market increases.
What would happen in this market? Explain your answer and reconstruct the graph
developed in question one to show this change. 8.
Assume that the number of sellers decreases in this market. What
would happen in this market? Explain your answer and reconstruct the graph
developed in question one to show this change.9.
Explain the difference between a normal good and an inferior good.
Would your answers to question 7 change depending on whether this good is a
normal or inferior good? Why?Deliverables:Develop your analysis in Microsoft Excel format. Enter
non-numerical responses in the same worksheet using textboxes. Submit to the W1:
Assignment 3 Dropbox by Tuesday May 21 2013.Name your document SU_ECO2072_W1_A3_LastName_FirstInitial. If you want to learn how to use Microsoft Excel to create curves
refer to the Microsoft Excel tutorial link.
Attachments: