3. A recent study found that the demand and supply sche- dules for frisbees are as follows: Price per frisbee Quantity demanded Quantity supplied €11 1 million frisbees 15 million frisbees 10 2 12 4 6 7 8 6 10 1 What are the equilibrium price and quantity of frisbees? a. Frisbee manufacturers persuade the government that frisbee production improves scientists' understanding of aerodynamics and thus is important for national security. The government decides to impose a price floor €2 above the equilibrium price. What is the new market price? How many frisbees are sold? b. Irate university students march on the government and demand a reduction in the price of frisbees. The govern- ment decides to repeal the price floor and impose a price ceiling €1 below the former price floor. What is the new market price? How many frisbees are sold?

New equipment to read 96-bit product codes thatare replacing old bar codes has just been purchasedby General Food Stores. As a trial, 1000 of theitems will be initially purchased. For book depreciation purposes (not tax), the total investmentof $50,000 will be written off over a 4-yearperiod, with no salvage value, by applying one ofthree methodsSL, 1.75% DB, or DDB. The objectiveis to have the largest amount of accumulateddepreciation after 2 years, in order to minimizethe lost depreciation if it is again necessary topurchase new-technology readers prior to the end ofthe 4-year useful life of the readers just purchased.You know that the answer is the DDB method, butyou must graphically demonstrate this result to yoursupervisor. Use a spreadsheet to do so.

12. Market equilibrlum and disequilibrlum The following graph shows the monthly demand and supply curves in the market for keyboards. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Keyboards 60 I Price (Dollars per keyboard) 54 18 Supply 48 Quantity Supplied (Keyboards) 420 Quantity Demanded 1,000 42 (Keyboards) 36 30 Demand 24 18 12 6. 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Keyboards) keyboards bought and sold per month. per keyboard, and the equilibrium quantity is The equilibrium price in this market isS PRICE (Dollars per keyboard)

Please help with Question E