1. Label the graph properly. Make sure you have the price and quantity on the correct axis. (4 marks)

Price Quantity Demanded
$50 100,000
$100 85,000
$200 60,000
$300 50,000
$400 35,000
$500 20,000
$800 17,500
$1,000 15,000
Price Quantity Supplied
$50 15,000
$100 30,000
$200 40,000
$300 50,000
$400 70,000
$500 85,000
$800 95,000
$1000 110,000

2. Fill in the following table stating howthe event would affect demand or supply for watches in Ontario (meaning will the curve will shift to the left or the right?). (4 marks)
Event Impact on Demand (will the demand curve shift to the left, the right, or remain the same)
1 The population in Ontario increases by 10%.
2 A trend-setting celebrity shows off her collection of 1000 watches starting a new fad.
3 Prices of cell phones fall, and consumers start to use their phone as a clock.
4 The price of watches rises by 10%.
Event Impact on Supply (will the supply curve shift to the left, the right, or remain the same)
1 The cost of one of the components used to make the watches increases.
2 The price of watches increases.
3 The number of firms producing watches declines when they cannot remain profitable during the recession.
4 New technology makes the manufacturing process more efficient.

3. Explain how credit card companies might react if the government sets a price for interest rates that is below the equilibrium point. Would this be considered a price floor or a price ceiling? (2 marks)

 
ORDER THIS ESSAY HERE NOW AND GET A DISCOUNT !!!