M1-A3 Assignment 3: Demand and Supply

M1-A3 Assignment 3: 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:

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

Assignment Guidelines:

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.
Remember,
quotations, paraphrases, and ideas you get from books, articles, or other
sources of information should be cited using APA style. Help with
citing sources can be found through the Academic Resources page under Course
Home.