B). Draw the supply curve with the slope of your choice (individual or market demand). Choose a price level (say, P1) and find the quantity supplied (Q1) for that price, using the supply curve drawn. Now, assume that price decreases to P2. What happens to the quantity supplied? How about if we have a decrease in the input prices for that product? Show what happens and explain. C). Draw the supply and demand curves together. Show the equilibrium point. Present graphically the equilibrium price and the equilibrium quantity.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
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B). Draw the supply curve with the slope of your choice (individual or market demand). Choose a price level (say, P1) and find the quantity supplied (Q1) for that price, using the supply curve drawn. Now, assume that price decreases to P2. What happens to the quantity supplied? How about if we have a decrease in the input prices for that product? Show what happens and explain.

C). Draw the supply and demand curves together. Show the equilibrium point. Present graphically the equilibrium price and the equilibrium quantity.

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