# Supply And Demand Of Ebook

Content type
User Generated
Subject
Economics
Type
Homework
Rating
Showing Page:
1/2
Supply and Demand of E-Book
1. Explain the laws of Demand and Supply of the table.
a) If demand increases and supply remains unchanged, a shortage will occur. It leads to a
higher equilibrium price.
b) If demand decreases and supply remains unchanged, a surplus will occur. It leads to a
lower equilibrium price.
c) If demand remains unchanged and supply increases, a surplus will occur. It leads to a
lower equilibrium price.
d) If demand remains unchanged and supply decreases, a shortage will occur. It leads to a
higher equilibrium price.
2. Describe the equilibrium price and quantity in this market.
According to the graph, equilibrium price is \$10, and equilibrium quantity is 8,000.
3. Assume that the government imposes a price floor of \$12 in the E-Book
market. Explain what would happen in this market.
The market equilibrium price is \$10, so the price floor (\$12) is higher than that.
Under the price floor, consumers need to pay more, and consumer surplus decreases.
On the other hand, producers can gain more, and producer surplus increases.
In the long run, producers supply more, but consumers demand less. Therefore, the
market will be excess supply.
\$0.00
\$2.00
\$4.00
\$6.00
\$8.00
\$10.00
\$12.00
\$14.00
\$16.00
\$18.00
\$20.00
0 2000 4000 6000 8000 10000 12000 14000 16000
Price
Quantity
E-Book Supply and Demand
(*Note:blue line is Qd, red line is Qs)

Showing Page:
2/2

Unformatted Attachment Preview
Supply and Demand of E-Book Price E-Book Supply and Demand (*Note:blue line is Qd, red line is Qs) \$20.00 \$18.00 \$16.00 \$14.00 \$12.00 \$10.00 \$8.00 \$6.00 \$4.00 \$2.00 \$0.00 0 2000 4000 6000 8000 10000 Quantity 12000 14000 16000 1. Explain the laws of Demand and Supply of the table. a) If demand increases and supply remains unchanged, a shortage will occur. It leads to a higher equilibrium price. b) If demand decreases and supply remains unchanged, a surplus will occur. It leads to a lower equilibrium price. c) If demand remains unchanged and supply increases, a surplus will occur. It l ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

### Review

Anonymous
Really useful study material!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4