User Account

All Pages

Describe difference between a normal good and inferior good

Assignment Help Microeconomics
Reference no: EM13392420

As an economist for ABC Plastics, your boss has asked you to respond to some questions she has regarding the company's main product, tablet cases. A marketing research firm recently developed the following supply and demand schedules for tablet cases:



Price/Case

Quantity Demanded

Quantity Supplied

$24

5000

18000

22

6000

17000

20

7000

16000

18

8000

15000

16

10000

14000

14

11000

13000

12

12000

12000

10

13000

11000

8

14000

10000

6

15000

9000

4

16000

8000

2

17000

7000

You are to develop a report addressing the following questions and present your findings to the Board of Directors:

Questions:

  1. Construct a graph showing supply and demand in the tablet case market, using Microsoft Excel.
  2. How are the laws of supply and demand illustrated in this graph? Explain your answers.
  3. What is the equilibrium price and quantity in this market?
  4. Assume that the government imposes a price floor of $16 in the tablet case market. What would happen in this market?
  5. Assume that the price floor is removed and a price ceiling is imposed at $8. What would happen in this market?
  6. Now assume that the price of tablet cases drops by 50%. How would this change impact the demand for tablet cases? Explain your answer and reconstruct the graph developed in question one to show this change.
  7. Assume that incomes of the consumers in this market increases. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.
  8. Assume that the number of sellers decreases in this market. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.
  9. Explain the difference between a normal good and an inferior good. Would your answers to question #7 change, depending on whether this good is a normal or inferior good? Why or why not?

Reference no: EM13392420

Questions Cloud

Write down a 700- to 1050-word paper analyzing the : select a publicly held company to use as the basis for this assignment. research your selected company and acquire the
Select a current product with which you are familiar and : select a current product with which you are familiar and pitch a new integrated marketing communication plan imc to
Make a 1050- to 1750-word paper that describes how : prepare a 1050- to 1750-word paper that explains how technology has affected the communication capabilities of
When applying overhead to products in an activity-based : when applying overhead to products in an activity-based costing system a. cash or a liability is debited and
Describe difference between a normal good and inferior good : as an economist for abc plastics your boss has asked you to respond to some questions she has regarding the companys
Name the model which will be most suitable for staffing : every company finds it challenging to recruit and select top executives for an international location. the nationals of
Using the cardinal rules of medical ethics as a base design : 1.using the cardinal rules of medical ethics as a base design a policy that you would implement as an administrator of
The warehouse manager and his staff have been very : the warehouse manager and his staff have been very impressed with your presentation thus far. they are very interested
Describe if free trade can ever be fair justify the : many americans feel that their jobs at home should be protected and that free trade should be limited. however global

Reviews

Write a Review

Microeconomics Questions & Answers

  What are the arguments for using real per capita gni

Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..

  What is the variance of the sample mean

The population proportion of economists predicting growth of at least 2.5% in real gross domestic product. The variance of the sample proportion of economists predicting growth of at least 2.5% in real gross domestic production.

  Average variable costs are 275 and average total costs are

a pure monopolist determines that at the current level of output the marginal cost of production is 2.00 average

  What circumstances will input choice be relatively similar

A Company operates plants in both the US (where capital is relatively cheap and labor is relatively expensive) & Mexico (where labor is relatively cheap and capital is relatively expensive). Under what circumstances will the input choice be relativ..

  What texts analysis of inflation-unemployment cycle suggest

As the economy slipped into recession in 1980 and 1981, the Fed was under enormous pressure to adopt an expansionary monetary policy. Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation-unemplo..

  Travel times on the bus and subway are independent

Assume Zack values his time at $0.25 per minute. He can purchase an MBTA report each morning that tells what the actual travel time will be for both the bus and the subway. How much is he willing to pay for this information?

  Can the country continue to afford deficits indefinitely

Assume that a country's real growth is 2 percent per year, while its real deficit is rising 5 percent a year. Can the country continue to afford such deficits indefinitely What problems might it face in the future

  Describe at the top of instruments that participants are

design either a survey quantitative - using a likert scale type instrument which has investigators ask questions in a

  Determine the new externality base price

You do not need to provide actual numbers; rather, show on the price axis where the price would be before the externality is considered and the price after the externality is included. What problems might exist in determining this new, externality..

  What is the short-run effect on the exchange rate of an

what is the short-run effect on the exchange rate of an increase in domestic real gnp given expectations about future

  What is the short-run equilibrium price

Suppose there are two technologies for producing steel. Under technology A, a firm's short-run total cost function is STCa(q)=1/2q^2+100q+10 with SMCa(q)=q+100, and using technology B it is STCb(q)=2q^2+6 with SMCb(q)= 4..

  What do you mean by econometrics and why is it relevant to

what is econometrics and why is it relevant? to what kinds of problems might econometrics be applied to improve

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd