M1 A2

M1 A2

  • Submitted By: dore1494
  • Date Submitted: 05/11/2016 7:32 PM
  • Category: Business
  • Words: 290
  • Page: 2


1) The equilibrium price of this market is roughly $125 and the equilibrium quantity is around 1750.
2) According to the Argosy University Student Library, “ According to the law of supply, all things being equal, as the price offered for a good rises, the quantity of the good supplied by sellers also rises. As the price falls, the quantity supplied also falls.According to the law of demand, all things being equal, as the price offered for a good rises, the quantity of the good demanded by buyers falls. As the price falls, the quantity demanded rises.”
3) If there was a price ceiling of $100 dollars implemented in this market, I believe that the supply rate will decrease and the demand rate will increase. The ceiling price will be below the market equilibrium which means it will be in more demand.
4) I believe that if a price floor of $150 were to be implemented on this particular market then the demand of the computers would decrease. You can see on my graph that the demand rates are declining as the price of the product increases. If the base price of the product is above the market equilibrium that I have found for the set numbers of the assignment, we can also assume that the supply of the product will decrease as well.
5) If consumers’ expectations were such that they were concerned about the economy and jobs, I believe that this market would probably stay the same. I believe that there are enough people out in the world that care about jobs and the economy enough that the market may stay the same. Although, if there are more jobs with a more stable economy, more products will be sold.

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