{"id":435232,"date":"2018-06-25T18:38:36","date_gmt":"2018-06-25T18:38:36","guid":{"rendered":"https:\/\/essaypaper.org\/?p=29168"},"modified":"2018-10-24T08:48:47","modified_gmt":"2018-10-24T08:48:47","slug":"supply-and-demand-assignment-paper","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/supply-and-demand-assignment-paper\/","title":{"rendered":"Supply And Demand Assignment Paper"},"content":{"rendered":"

Supply And Demand<\/strong><\/h2>\n
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Assignment Overview<\/strong><\/h4>\n

Before beginning this assignment, make sure you have gone carefully through all of the required readings for this module.\u00a0 It is very important to carefully absorb the general concepts as well as the numerical examples in the background readings.\u00a0 For this assignment, you will have to answer some purely conceptual questions, as well as some numerical problems.\u00a0 For conceptual questions, make sure to thoroughly explain your answers and to cite specific readings from the required background materials to explain your answers.\u00a0 For numerical problems, make sure to show all of your work and explain how you arrived at your answers (partial credit can be given if you get the final answer wrong but do some of the steps correctly).<\/p>\n

Case Assignment<\/strong><\/h4>\n

Part A: Conceptual questions<\/p>\n

1.\u00a0\u00a0 Suppose you own a pet shop.\u00a0 Your sales are decent but a marketing consultant tells you that you could increase your sales and be able to charge a higher price if you spend some money on local television ads.\u00a0 If the consultant is right, will advertising lead to an increase in quantity demanded?\u00a0 Or a shift in the demand curve?\u00a0 Both?\u00a0 Neither?\u00a0 Explain your answer and make sure to cite at least one of the required readings in your answer.<\/p>\n

2.\u00a0\u00a0 You are the owner of a furniture factory.\u00a0 You normally produce 100 pieces of furniture a day because that is how much you can produce given the amount of qualified workers in your town and the amount of reasonably priced wood that you can purchase locally.\u00a0 Then one day you get an order from a large national retail chain who wants to purchase 200 pieces of furniture a day from you.\u00a0 You are hesitant, as you will have to pay higher wages to get some qualified workers to move to your town.\u00a0 You also will need to pay higher prices for wood because you will no longer be able to rely solely on local suppliers and will have to spend more on shipping wood from other towns.\u00a0 But you drive a hard bargain and the retail chain agrees to pay one and a half times your normal price.\u00a0 Does this situation describe a change in quantity supplied?\u00a0 A shift in the supply curve?\u00a0 Both?\u00a0 Neither? Explain your answer and make sure to cite at least one of the required readings in your answer.<\/p>\n

3.\u00a0\u00a0 Suppose marijuana has just been legalized in your state.\u00a0 Nobody in your home town wants to start a marijuana business, as this would be too much of a stigma.\u00a0 But being an MBA student, you know a good business opportunity when you see one and decide to take a stab.\u00a0 Shortly after starting up your business, you gain a loyal following of customers and start raking in some steep profits.\u00a0 However, the local government decides that they want a cut of your profits and starts charging a 20% sales tax on marijuana.\u00a0 Do you think this would lead to a 20% or greater loss in sales?\u00a0 Do you think marijuana in this situation would be facing inelastic or elastic demand?\u00a0 Explain your reasoning, and make sure to cite at least one of the required readings regarding elasticity.<\/p>\n

Part B Quantitative Problem<\/p>\n

Suppose the demand function for a new smartphone can be expressed as QD =\u00a0 1000 \u2013 1.5P with QD being quantity demanded and P being price.\u00a0 The supply function can be expressed as QS = 50 + 2P<\/p>\n

Fill out the following table using the above equations:<\/p>\n

Price<\/p>\n

Quantity Demanded<\/p>\n

Quantity Supplied<\/p>\n

Surplus Amount or Shortage Amount<\/p>\n

200<\/p>\n

220<\/p>\n

240<\/p>\n

260<\/p>\n

280<\/p>\n

300<\/p>\n

320<\/p>\n

340<\/p>\n

Now answer the following questions:<\/p>\n

1.\u00a0\u00a0 What is the equilibrium price?\u00a0 You can compute this either using Microsoft Excel, or by using algebra from the equations above and solving for a price where quantity supplied equals quantity demanded. Show your work by either showing the algebra steps or by showing how you used Excel to calculate.<\/p>\n

2.\u00a0\u00a0 Suppose the supply function changes to 100 + 2P.\u00a0 What is the new equilibrium? Show your work by either showing the algebra steps or by showing how you used Excel to calculate.<\/p>\n

Assignment Expectations<\/strong><\/h4>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Answer the assignment questions directly.<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Stay focused on the precise assignment questions. Do not go off on tangents or devote a lot of space to summarizing general background materials.<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For computational problems, make sure to show your work and explain your steps.<\/p>\n

For short answer\/short essay questions, make sure to reference your sources of information with both a bibliography and in-text citations. See the Student Guide to Writing a High-Quality Academic Paper<\/em>, including pages 11-14 on in-text citations. Another resource is the \u201cWriting Style Guide,\u201d which is found under \u201cMy Resources\u201d in the TLC Portal.<\/p>\n<\/div>\n

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