Explain how the laws of supply and demand are illustrated

Question

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.

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.

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

Answer 1

By using the Microsoft (MS) Excel and MS Word document, prepare a graph exhibiting demand and supply in the market for a given data. I need the answers of the following questions: Question 1: Describe how Laws of Supply and Demand are described in the graph. Question 2: Explain the equilibrium price and quantity in the market. Question 3: Suppose that the government compels a price floor of $12 in the E-Book market. Describe what would go on in the market. Be sure to verify and edit your work earlier than submitting. Please cite your source by utilizing APA guidelines. For this work, you must exploit sources outside of the text-book.