Directions Post your initial response by Thursday & reply to 2 other students by Saturday. You have been learning about the factors that affect supply and demand as well as how price affects the quantity demanded or supplied. In this week's discussion board, you will be running a computer printer shop. You only produce and sell various types of printers which you make using various inputs. Below is a list of economic conditions you are currently experiencing: 1. You implemented new technology to build the printers. 2. You experienced a decrease in the price of print ink cartridges a complement for printers. 3. You increase the price of printers. 4. The price of plastic to make the printers decreases, 5. A new eco-friendly trend as emerged and your printer is rated #1 in eco- friendliness. Using the 4-step process in described in chapter 3 complete the following for each scenario: 1. Step 1-Draw a demand curve and supply curve before the economic change took place label as D1 and 51. Find the initial equilibrium values for price and quantity label as P1 and Q1. 2. Step 2 - Decide whether the economic change being analyzed affects demand or supply. 3. Step 3-Decide whether the effect on demand or supply causes the curve to shift to the right or to the left or no change, and sketch the new demand or supply curve on the diagram. Label the new curve as either D2 or $2. 4. Step 4-Identify the new equilibrium price and quantity as D2 and Q2. Compare the original equilibrium price and quantity P1 and Q1 to the new equilibrium price and quantity P2 and Q2. Did the price increase or decrease did the quantity increase or decrease?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Directions Post your initial response by Thursday & reply to 2 other students by Saturday. You have been learning about the factors that affect supply and demand as well as how price affects the quantity demanded or supplied. In this week's discussion board, you will be running a computer printer shop. You only produce and sell various types of printers which you make using various inputs. Below is a list of economic conditions you are currently experiencing: 1. You implemented new technology to build the printers. 2. You experienced a decrease in the price of print ink cartridges a complement for printers. 3. You increase the price of printers. 4. The price of plastic to make the printers decreases, 5. A new eco-friendly trend as emerged and your printer is rated #1 in eco- friendliness. Using the 4-step process in described in chapter 3 complete the following for each scenario: 1. Step 1-Draw a demand curve and supply curve before the economic change took place label as D1 and 51. Find the initial equilibrium values for price and quantity label as P1 and Q1. 2. Step 2 - Decide whether the economic change being analyzed affects demand or supply. 3. Step 3-Decide whether the effect on demand or supply causes the curve to shift to the right or to the left or no change, and sketch the new demand or supply curve on the diagram. Label the new curve as either D2 or $2. 4. Step 4-Identify the new equilibrium price and quantity as D2 and Q2. Compare the original equilibrium price and quantity P1 and Q1 to the new equilibrium price and quantity P2 and Q2. Did the price increase or decrease did the quantity increase or decrease?

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