Assignment: Demand And Supply
The use of E-Books has increased in recent years, especially with the advent of mobile E-Readers. A marketing research firm recently developed the following supply and demand schedules for E-books:
EBook- Supply and Demand
|
Price/E-Book
|
Quantity Demanded
|
Quantity Supplied
|
|
$18
|
4000
|
10,000
|
|
16
|
5000
|
9500
|
|
14
|
6000
|
9000
|
|
12
|
7000
|
8500
|
|
10
|
8000
|
8000
|
|
9
|
9000
|
7500
|
|
8
|
10000
|
7000
|
|
7
|
11000
|
6500
|
|
6
|
12000
|
6000
|
|
5
|
13000
|
5500
|
|
4
|
14000
|
5000
|
|
2
|
15000
|
4500
|
Using Microsoft (MS) Excel, construct a graph showing supply and demand in the E-Book market based on the data above. (Save this file because you will re-work it later in the assignment.) When finished, copy and paste or import your graph into an MS Word document.
(Tutorials for working with MS Excel and MS Word can be found through the Tutoring Services and Tutorials link at the top of the page.)
In your MS Word document, below your imported graph, respond to the following:
1. Explain how the Laws of Supply and Demand are illustrated in this graph.
2. Describe the equilibrium price and quantity in this market.
3. Assume that the government imposes a price floor of $12 in the E-Book market. Explain what would happen in this market.
4. Assume that the price floor is removed and a price ceiling is imposed at $6. Explain what would happen in this market.
5. Now, assume that the price of E-Readers (used with E-Books) drops from $60 by fifty percent. How would this change impact the demand for E-Books? Explain your answer. Then, reconstruct your original graph to show this change and place it in your MS Word document below your explanation.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.