Assignment 3: Demand and Supply

The use of E-Books has increased in recent years, especially with the advent of mobile E-Readers.  A marketing research firm recently developed the following supply and demand schedules for E-books:

Price/E-Book        Quantity Demanded                  Quantity Supplied

$18                             4000                                                     10,000

16                                5000                                                      9500

14                                6000                                                      9000

12                                7000                                                      8500

10                                8000                                                      8000

9                                   9000                                                      7500

8                                10000                                                      7000

7                                11000                                                      6500

6                                12000                                                      6000

5                                13000                                                      5500

4                                14000                                                      5000

2                                15000                                                      4500

Assignment Guidelines:

Using Microsoft (MS) Excel, construct a graph showing supply and demand in the E-Book market based on the data above. (Save this file because you will re-work it later in the assignment.) When finished, copy and paste or import your graph into an MS Word document.

(Tutorials for working with MS Excel and MS Word can be found through the Tutoring Services and Tutorials link at the top of the page.)

In your MS Word document, below your imported graph, respond to the following:

Explain how the Laws of Supply and Demand are illustrated in this graph.

Describe the equilibrium price and quantity in this market.

Assume that the government imposes a price floor of $12 in the E-Book market. Explain what would happen in this market.

Assume that the price floor is removed and a price ceiling is imposed at $6. Explain what would happen in this market.

Now, assume that the price of E-Readers (used with E-Books) drops from $60 by fifty percent. How would this change impact the demand for E-Books? Explain your answer. Then, reconstruct your original graph to show this change and place it in your MS Word document below your explanation. 

Remember, quotations, paraphrases, and ideas you get from books, articles, or other sources of information should be cited using APA style. Help with citing sources can be found through the Academic Resources page under the Help menu.

Save your MS Word file using the filename LastnameFirstInitial_M1A3 and submit it to the Submissions Area by the due date assigned.

Microsoft Excel Tutorials:

Microsoft Excel 2016

Microsoft Excel 2013

Microsoft Excel 2010

Assignment 3 Grading Criteria

Maximum Points

Correctly constructed the supply and demand graph.

12

Answered Question 2-5 correctly, 15 points each.

60

Answered question 6 correctly and correctly constructed a new supply and demand graph.

8

Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation.

20

Total:

100