{"id":9642,"date":"2022-04-13T23:15:26","date_gmt":"2022-04-13T23:15:26","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/?post_type=chapter&p=9642"},"modified":"2024-09-11T16:43:19","modified_gmt":"2024-09-11T16:43:19","slug":"module-3-assignment-problem-set-supply-and-demand","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/module-3-assignment-problem-set-supply-and-demand\/","title":{"raw":"Module 3 Assignment: Problem Set \u2014 Supply and Demand","rendered":"Module 3 Assignment: Problem Set \u2014 Supply and Demand"},"content":{"raw":"Click on the link to download the problem set for this module:\u00a0Supply and Demand Problem Set.<\/a>\r\n

Supply and Demand Problem Set[1]<\/strong><\/a><\/sup><\/h2>\r\n

Use the following graph to answer questions 1 through 3:<\/h3>\r\n\"A<\/a>\r\n
    \r\n \t
  1. Plot the following Price and Quantity combinations: (4, 8), (1, 2), (5, 10)<\/li>\r\n \t
  2. Is your graph more likely to be a demand curve or a supply curve? Why?<\/li>\r\n \t
  3. Using the equation of a line, and P for price and Q for quantity, what is the algebraic formula of this curve?<\/li>\r\n<\/ol>\r\n

    Use the following graph to answer questions 4 and 5:<\/h3>\r\n\"A<\/a>\r\n
      \r\n \t
    1. Plot the following Price and Quantity combinations. Note that the points are given in the format (Quantity, Price).(0, 50), (2, 40), (4, 30), (6, 20), (8, 10)<\/li>\r\n \t
    2. Using the equation of a line, what is the algebraic formula of this demand curve?\u00a0<\/strong><\/li>\r\n<\/ol>\r\n

      Use the following information to answer questions 6 through 10:<\/h3>\r\nSuppose the equation of the line changes to [latex]P=-5\\times Q+70[\/latex]. Compute the quantity demanded at each indicated price.\r\n
        \r\n \t
      1. Price: $50, Quantity:<\/li>\r\n \t
      2. Price: $40, Quantity:<\/li>\r\n \t
      3. Price: $30, Quantity:<\/li>\r\n \t
      4. Price: $20, Quantity:<\/li>\r\n \t
      5. Price: $10, Quantity:<\/li>\r\n<\/ol>\r\n \r\n

        Use the following graph to answer questions 11 through 14:<\/h3>\r\n\"A<\/a>\r\n
          \r\n \t
        1. Let's call the original demand curve (from Question 4) D1 and the new demand curve (from Questions 6-10) D2. Plot both of the demand curves on the graph above.<\/li>\r\n<\/ol>\r\n \r\n\r\nUse the formulas for the two demand curves to compute the quantity demanded shown by each curve at a price of $34.\r\n
            \r\n \t
          1. Demand Curve D1: Price: $34, Quantity:<\/li>\r\n \t
          2. Demand Curve D2: Price: $34, Quantity:<\/li>\r\n \t
          3. Describe what has happened to demand in this problem.<\/li>\r\n<\/ol>\r\n \r\n

            Use the following information to answer questions 15 and 16:<\/h3>\r\nUse the following two equations for the demand and supply curves to compute the equilibrium price value.\r\n\r\nDemand curve: [latex]Q_d=3300-2P[\/latex]\r\n\r\nSupply curve:\u00a0[latex]Q_s=500+8P[\/latex]\r\n
              \r\n \t
            1. What is the value of the equilibrium price?<\/li>\r\n \t
            2. What is the equilibrium quantity?<\/li>\r\n<\/ol>\r\n \r\n

              Use the following information to answer questions 17 and 18:<\/h3>\r\nSuppose Congress cuts personal income tax rates.\r\n
                \r\n \t
              1. Draw a simple supply and demand graph to show how this would affect the market for refrigerators.<\/li>\r\n<\/ol>\r\n \r\n
                  \r\n \t
                1. Why does this shift occur? How does that affect the equilibrium price and quantity? Explain.<\/li>\r\n<\/ol>\r\n \r\n

                  Use the following information to answer questions 19 and 20:<\/h3>\r\nSuppose that scooter workers accept a pay cut of 2 dollars per hour.\r\n
                    \r\n \t
                  1. Draw a graph to show how this would affect the market for scooters.<\/li>\r\n<\/ol>\r\n \r\n\r\n \r\n\r\n \r\n
                      \r\n \t
                    1. Why does this shift occur? How does that affect the equilibrium price and quantity? Explain.<\/li>\r\n<\/ol>\r\n \r\n
                      \r\n\r\n \r\n\r\n
                      \r\n\r\n[1]<\/a> This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https:\/\/www.desmos.com\/calculator<\/a>.\r\n\r\n<\/div>","rendered":"

                      Click on the link to download the problem set for this module:\u00a0Supply and Demand Problem Set.<\/a><\/p>\n

                      Supply and Demand Problem Set[1]<\/strong><\/a><\/sup><\/h2>\n

                      Use the following graph to answer questions 1 through 3:<\/h3>\n

                      \"A<\/a><\/p>\n

                        \n
                      1. Plot the following Price and Quantity combinations: (4, 8), (1, 2), (5, 10)<\/li>\n
                      2. Is your graph more likely to be a demand curve or a supply curve? Why?<\/li>\n
                      3. Using the equation of a line, and P for price and Q for quantity, what is the algebraic formula of this curve?<\/li>\n<\/ol>\n

                        Use the following graph to answer questions 4 and 5:<\/h3>\n

                        \"A<\/a><\/p>\n

                          \n
                        1. Plot the following Price and Quantity combinations. Note that the points are given in the format (Quantity, Price).(0, 50), (2, 40), (4, 30), (6, 20), (8, 10)<\/li>\n
                        2. Using the equation of a line, what is the algebraic formula of this demand curve?\u00a0<\/strong><\/li>\n<\/ol>\n

                          Use the following information to answer questions 6 through 10:<\/h3>\n

                          Suppose the equation of the line changes to [latex]P=-5\\times Q+70[\/latex]. Compute the quantity demanded at each indicated price.<\/p>\n

                            \n
                          1. Price: $50, Quantity:<\/li>\n
                          2. Price: $40, Quantity:<\/li>\n
                          3. Price: $30, Quantity:<\/li>\n
                          4. Price: $20, Quantity:<\/li>\n
                          5. Price: $10, Quantity:<\/li>\n<\/ol>\n

                             <\/p>\n

                            Use the following graph to answer questions 11 through 14:<\/h3>\n

                            \"A<\/a><\/p>\n

                              \n
                            1. Let’s call the original demand curve (from Question 4) D1 and the new demand curve (from Questions 6-10) D2. Plot both of the demand curves on the graph above.<\/li>\n<\/ol>\n

                               <\/p>\n

                              Use the formulas for the two demand curves to compute the quantity demanded shown by each curve at a price of $34.<\/p>\n

                                \n
                              1. Demand Curve D1: Price: $34, Quantity:<\/li>\n
                              2. Demand Curve D2: Price: $34, Quantity:<\/li>\n
                              3. Describe what has happened to demand in this problem.<\/li>\n<\/ol>\n

                                 <\/p>\n

                                Use the following information to answer questions 15 and 16:<\/h3>\n

                                Use the following two equations for the demand and supply curves to compute the equilibrium price value.<\/p>\n

                                Demand curve: [latex]Q_d=3300-2P[\/latex]<\/p>\n

                                Supply curve:\u00a0[latex]Q_s=500+8P[\/latex]<\/p>\n

                                  \n
                                1. What is the value of the equilibrium price?<\/li>\n
                                2. What is the equilibrium quantity?<\/li>\n<\/ol>\n

                                   <\/p>\n

                                  Use the following information to answer questions 17 and 18:<\/h3>\n

                                  Suppose Congress cuts personal income tax rates.<\/p>\n

                                    \n
                                  1. Draw a simple supply and demand graph to show how this would affect the market for refrigerators.<\/li>\n<\/ol>\n

                                     <\/p>\n

                                      \n
                                    1. Why does this shift occur? How does that affect the equilibrium price and quantity? Explain.<\/li>\n<\/ol>\n

                                       <\/p>\n

                                      Use the following information to answer questions 19 and 20:<\/h3>\n

                                      Suppose that scooter workers accept a pay cut of 2 dollars per hour.<\/p>\n

                                        \n
                                      1. Draw a graph to show how this would affect the market for scooters.<\/li>\n<\/ol>\n

                                         <\/p>\n

                                         <\/p>\n

                                         <\/p>\n

                                          \n
                                        1. Why does this shift occur? How does that affect the equilibrium price and quantity? Explain.<\/li>\n<\/ol>\n

                                           <\/p>\n

                                          \n

                                           <\/p>\n

                                          \n

                                          [1]<\/a> This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https:\/\/www.desmos.com\/calculator<\/a>.<\/p>\n<\/div>\n\n\t\t\t

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                                          CC licensed content, Original<\/div>