Describe what is equilibrium price and quantity in market

Assignment Help Microeconomics

Reference no: EM131837672

Assignment: Price Controls

A MBA student is in his second year of business school and he is looking to launch a new smart phone to rival the iPhone 7. He created the following demand and supply schedules for Samsung G3.

• Present your analysis in Excel format.
• Enter non-numerical responses in Excel as well.

Questions:

1. Using Microsoft Excel, draw a graph illustrating the supply and demand in this market (label your axis).

2. What is the equilibrium Price and Quantity in the market?

3. Now suppose the government imposes a special tax on these smartphones. Describe what would happen in this market in terms of the supply and demand curve.

4. Disregard the new tax in part three. Now assume that the government imposes a price ceiling of $100 in this market, as a result of protests of price gauging by the sellers. What would happen to the price and quantity in this market?

5. Disregard the events of part four. Assume that the manufacturers of this product lobby the government's lawmakers, in terms of this product being an essential for college students but they are considering halting production due to the lack of profits. The lawmakers agree and now set a price floor at $150. What would happen in this market?

6. If consumers' expectations were such that they were concerned about the economy and jobs, what do you think would happen in this market?

Submit the Excel file as an attachment to the appropriate assignment submission folder.

• All written assignments and responses should follow APA rules for attributing sources.

Youtube video on graphing supply and demand curve: "Graphing Supply and Demand in Excel".

Price/Smartphone	Quantity Demanded	Quantity Supplied
$200	1000	2200
175	1250	2050
150	1500	1900
125	1750	1750
100	2000	1600
75	2250	1450
50	2500	1300
25	2750	1150

Reference no: EM131837672

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