Business

DEMAND AND SUPPLY – Must be plagiarism free and 100% original

Short Answer Questions. Please address the following questions. Your total page requirement is 3- to 5-pages, double-spaced and typed, APA format.

1. Use the graph to answer the questions below for the market for t-shirts.

(copy and paste to a separate word file):

a. What is the market price?

b. What is the market quantity?

c. On the graph, which price shows excess demand?

d. An increase in quantity demanded would be a movement from point (a) to point ______.

2. Suppose there is a sale on jeans. What happens to the market equilibrium (price and quantity)? Be sure to use the concept of shifting supply or demand and how jeans affect the market for t-shirts.

3. If t-shirts are a normal good, what happens if income increases? Give some examples of inferior goods.

4. Suppose the price of t-shirts decreases by 30% and quantity demanded increases by 60%, calculate the price elasticity of demand. Is this considered inelastic or elastic? Explain.

Assignment Expectations – ONLINE RESOURCES with Links ONLY

Use concepts from the modular background readings, as well as any good-quality resources you find. Please be sure to cite all sources within the text and provide a reference list at the end of the paper.

The following items will be assessed:

· Your ability to apply the basic economic concepts to the questions.

· Some in-text references to the modular background readings (APA formatting not required).

· The assignment should address each question for full credit. Remember to support your answers with solid references, including the case readings

Economic Concepts: Demand, Supply, and Elasticity, Podcast. http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12262

Economic Concepts: Demand, Supply, and Elasticity, Interactive Tutorial. http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12226