Reference no: EM13243437

1. Your son is graduating from high school and is about to enter the work force. He has developed a strong curiosity about our economic system and how it works. Because you have a good understanding of basic economics, he has asked you to explain several concepts that are essential to an understanding of how the economy works. Your son has asked you to explain the following concepts and ideas:

1.Absolute and comparative advantage: Explain how these concepts describe the benefits and costs of international trade.
2."Invisible hand": What is it and how does it affect the decision-making process in our economic system?
3.Circular flow diagram: Include the government sector in your explanation, a description of the roles that each participant plays in the economy, and how the different sectors interact in the markets.
4.The Production Possibilities model: Provide an example and include a summary of what the model is illustrating and the economic implications for the economy.
5.Microeconomics and macroeconomics: Explain the differences between the two and why economics is divided into these two subdivisions.

Deliverables:
a. Submit an 3-6 page paper in Microsoft Word format, addressing the items above.
b. Create a Microsoft PowerPoint presentation of 5-10 slides that summarizes your findings in your report.

2. You have been hired by a new firm selling electronic dog feeders. Your client has asked you to gather some data on the supply and demand for the feeder, which is given below, and address several questions regarding the supply and demand for these feeders.
Price/Feeder Quantity Demanded Quantity Supplied
$300 500 1800
270 600 1700
240 700 1600
210 800 1500
180 1000 1400
150 1100 1300
120 1200 1200
90 1300 1100
60 1400 1000
30 1500 900
10 1600 800

Your client has asked that you develop a report addressing the following questions so that you can present these findings to their Board of Directors:

Questions:
a. Construct a graph showing supply and demand in the electronic dog feeder market, using Microsoft Excel.

b. How are the laws of supply and demand illustrated in this graph? Explain your answers.

c. What is the equilibrium price and quantity in this market?

d. Assume that the government imposes a price floor of $180 in the feeder market. What would happen in this market?

e. Assume that the price floor is removed and a price ceiling is imposed at $90. What would happen in this market?

f. Now, assume that the price of feeders drops by 50%. How would this change impact the demand for feeders? Explain your answer and reconstruct the graph developed in question one to show this change.

g. 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.

h. 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.

i. 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?

Deliverables:

Develop your analysis in Microsoft Excel format. Enter non-numerical responses in the same worksheet using textboxes.

I need in-text citations and references that I will be able to go back and read as well and APA format.