A change in supply surge

Individual and market demand

Suppose that Gilberto and Juanita are the only consumers of scented candles in a particular market. The following table shows their annual demand schedules:

   

Price

Gilberto’s Quantity Demanded

Juanita’s Quantity Demanded

 

(Dollars per candle)

(Candles)

(Candles)

 

2

16

32

 

4

10

24

 

6

6

16

 

8

2

12

 

10

0

8

On the following graph, plot Gilberto’s demand for scented candles using the green points (triangle symbol). Next, plot Juanita’s demand for scented candles using the purple points (diamond symbol). Finally, plot the market demand for scented candles using the blue points (circle symbol).

Created with Raphaël 2.1.2

Gilberto’s Demand

Juanita’s Demand

Market Demand

0

8

16

24

32

40

48

12

10

8

6

4

2

0

PRICE (Dollars per candle)

QUANTITY (Candles)

5. A change in supply versus a change in quantity supplied

The following calculator shows the supply curve for sedans in an imaginary market. For simplicity, assume that all sedans are identical and sell for the same price. Two factors that affect the supply of sedans are the level of technical knowledge—in this case, the speed with which manufacturing robots can fasten bolts, or robot speed—and the wage rate that auto manufacturers must pay their employees. Initially, the graph shows the supply curve when robots can fasten 2,500 bolts per hour and autoworkers earn $25 per hour.

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.

Created with Raphaël 2.1.2

0

100

200

300

400

500

600

700

800

900

50

40

30

20

10

0

PRICE (Thousands of dollars)

QUANTITY (Sedans per month)

Supply 

Graph Input Tool

   

Supply for Sedans

 

20

 

225

   

Price of a Sedan

(Thousands of dollars)

   

Quantity Supplied

(Sedans per month)

   

   

SUPPLY SHIFTERS

 

2500

 

25

   

Robot Speed

(Bolts per hour)

   

Autoworker Wage

(Dollars per hour)

Consider the previous graph. Suppose that the price of a sedan decreases from $22,000 to $17,000. This would cause the of sedans to decrease, which is reflected on the graph by a the supply curve.

Suppose the workers’ union negotiates a pay raise. This causes a the supply curve because the pay raise makes cars .

Premium Custom Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.