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April 13, 2024

ECON2301-question

The problem set answers should only contain answers. Do not retype the questions.

All answers are to be black font, typed, including any calculations.

Answers should be given in a paragraph form that provides a thorough explanation. A one sentence answer is not adequate. Even in the case of calculations, they should be explained.
Graphs are to be neatly hand drawn.
Graphs are to be clearly labeled

Graphs are to be inserted into the paragraph of the answer

All answers are checked by Turnitin, which checks for plagiarism.

. Be sure you submit your final problem set answers.

The problem set answers should be considered a formal paper and should be treated as such.

Questions:

Draw a supply and demand graph for Orange juice . Show the market at an equilibrium price of $5 and equilibrium quantity of 200. If the number of buyers decrease and the number of sellers increase, what is the effect on the equilibrium price and equilibrium quantity. Explain and show the change on the graph.

Using a supply and demand graph for gasoline starting at an equilibrium price of $4.00 per gallon and a quantity of 30 gallons, show the effect of a government price floor on gasoline of $5.00 a gallon. Is this a binding price floor? Why or why not? Please explain.

Evaluate the following statement. The price of chocolate decreases which leads to a decrease in the supply of chocolate.

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