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

$18400010,000

1650009500

1460009000

1270008500

1080008000

990007500

8100007000

7110006500

6120006000

5130005500

4140005000

2150004500

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:

1. Explain how the Laws of Supply and Demand are illustrated in this graph.
2. Describe the equilibrium price and quantity in this market.
3. Assume that the government imposes a price floor of $12 in the E-Book market. Explain what would happen in this market.
4. Assume that the price floor is removed and a price ceiling is imposed at $6. Explain what would happen in this market.
5. 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 Course Home.

Save your MS Word file using the filename LastnameFirstInitial_M1A3 and submit it to the M1: Assignment 3 Dropbox by Wednesday, February 17, 2016.

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: