Supply Demand Market Equilibrium

Assignment No. 3: Supply Demand Market Equilibrium (20 points maximum, less 20% late penalty per day after the due date): (MLA-CITATIONS).

Supply, Demand and Market Equilibrium

Consider the following information on the supply and demand of widgets.

1. Using Excel Charts, set up a diagram showing the supply curve, the demand curve, the equilibrium price, and quantity. In your diagram, please make sure that you put the quantity on the horizontal axis in your diagram. (You should create your diagram in Excel and then cut and paste it into the single Word file or pdf that you submit).
2. In the context of the diagram that you created in part A, write a short essay outlining and explaining the concept of market equilibrium. As part of your answer make sure that you explain why, and in what sense, an equilibrium will exist in markets with clearly defined supply and demand curves.
3. Finally explain what will happen to the amount actually traded in this market (i) if the government steps in and puts in place a maximum legal price (a.k.a. a price ceiling) that forces the market participants to trade at a price that is lower than the equilibrium price, and (ii) if the government steps in and puts in place a minimum legal price (a.k.a. a price floor) that forces the market participants to trade at a price that is higher than the equilibrium price in this market.

Note that you must upload your answer as one single Word or pdf file that will be reviewed by Turnitin for originality.MLA

Note that this essay assignment will be reviewed for originality using Turnitin. While you do not have to confirm to any particular citation style, all direct quotes must be identified by quotation marks, along with a citation that identifies the source of the quote in question:

ORIGINALITY:

The assignment must be your own original work and it must be written specifically for this class. The assignment will be checked for originality using turnitin.com. Any citation omissions will affect your assignment grade, but significantly plagiarized assignments will receive a grade of zero, with no exceptions and with no do-overs.

CITATIONS:

You must cite all your sources.

PROPER QUOTATIONS & QUOTATION MARKS:

You must use quotation marks, or else use indented blocks, to identify all quotations. It is OK to paraphrase and not use direct quotes only when your language is completely different from the original, but you must still give proper credit to your sources. It is not OK to just insert a few words of your own into another writer’s text and then appropriate it without using quotation marks.