Supply and Demand Concepts

You have been hired by a new firm seling 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 aked that you develop a report addresing the following questions so that you can present these findings to their Board of Directors:

Questions:

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

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

3. Whaaat is the equilibrium price and quantity in this market?

4. Assume that the government imposes aprice floor of $180 in the feeder market. What would happen in this market?

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

6. 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.

7. Assume that incomes of the consumers in this market increses. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.

8. Assume that the number os sellers decreases in this market. what would happen in this market? Explain your answer and reconstruct the graph developed inquestion one to show this change.

9. 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?