BartrugS M1A3
My Supply and Demand Stephani Bartrug October 1, 2014 Argosy University Professor George Williams
Abstract Everyone knows in the day and age know about Supply and Demand. The laws of Supply and Demand are quite simple, when the Demand goes up the price increases. When the Demand decreases the price goes down. In the middle of this all this is called Supply. Ok, you need a Supply of something. In this paper the Supply is a demand for computers for a doctoral student looking for a computer. Price is different in very state due to taxes imposed from city, county and state taxes. In the small town I live it, we have no taxes just county and state taxes combined at 7%. Everything has taxes on it, except the air we breathe. I will explain how to figure out the Equilibrium price and Quantity price of the computers. I will show in a line graph the supply and demand of the computers.
Questions
What is the Equilibrium and Quantity price? The answer, shown from the graph is when the two points come together. So, the Equilibrium Price is $125 and the Quantity Price is $1750
Now suppose the government imposes a special tax on these computer. Describe what would happen in this market in terms of the supply and demand curve. If the government did imposes a special tax the price would increase so the demand would go down and the price would drop to meet demand. Meaning, whoever made the computer,(Such as Dell), would lose money. Now assume that the government imposes a price ceiling of $100 in this market, as a result of protests of price gouging by the sellers. What would happen to the price and quantity in this market? The price would be at $100 because the government imposed it due to price
Abstract Everyone knows in the day and age know about Supply and Demand. The laws of Supply and Demand are quite simple, when the Demand goes up the price increases. When the Demand decreases the price goes down. In the middle of this all this is called Supply. Ok, you need a Supply of something. In this paper the Supply is a demand for computers for a doctoral student looking for a computer. Price is different in very state due to taxes imposed from city, county and state taxes. In the small town I live it, we have no taxes just county and state taxes combined at 7%. Everything has taxes on it, except the air we breathe. I will explain how to figure out the Equilibrium price and Quantity price of the computers. I will show in a line graph the supply and demand of the computers.
Questions
What is the Equilibrium and Quantity price? The answer, shown from the graph is when the two points come together. So, the Equilibrium Price is $125 and the Quantity Price is $1750
Now suppose the government imposes a special tax on these computer. Describe what would happen in this market in terms of the supply and demand curve. If the government did imposes a special tax the price would increase so the demand would go down and the price would drop to meet demand. Meaning, whoever made the computer,(Such as Dell), would lose money. Now assume that the government imposes a price ceiling of $100 in this market, as a result of protests of price gouging by the sellers. What would happen to the price and quantity in this market? The price would be at $100 because the government imposed it due to price