ECO 1401: Principals of Microeconomics: Summer 2022
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
ECO 1401: Principals of Microeconomics: Summer 2022
Midterm Project Instructions and Requirements
Hypothetical Market
Due Date: April 14, 2023 Before Midnight
Only Online Submission Via Blackboard
All wok should be done by computer. No hand writing or graphing.
All copying to this project is prohibited. It should be 100% you own work.
A: Instructions
1- The Midterm project makes 50% of your course grade.
2- There is no specific number of pages for this project since the writing style varies. However, If your answers to the questions are right, precise and comprehensive you have met all the requirements of this project. Make sure to number your answers & Do not copy the questions to the answer sheet.
3- The ONLY accepted format for the answer document this project is PDF.
4- The ONLY accepted mode of writing & graphing is the computer.
5- Upload the project to the “Midterm project submission link” on Blackboard before the deadline. 6- Do not Copy Anything from Any source. This project should be 100% your own work.
B: Requirements
1- Create a hypothetical market (make a table showing values for Quantity Supplied, Quantity Demanded and Price). Any values you like and make sense to you!
- Make at least 10 data points and keep a constant slope for both functions (supply & demand).
2- In the table, label the equilibrium price and quantity in red.
- Create a graph for this market (supply & demand). You can use excel or any other software you prefer. Make sure to show all information on the graph.
3- Calculate the slope and intercept
A. Write the supply & demand equations.
B. Comment on the two equations and on the values of the slope and intercept. What do they mean?
4- List the demand determinants and supply determinants and show how thy might shift the supply and demand functions.
A. Show graphically the impact on the equilibrium price for higher & lower demand
B. Show graphically the impact on the equilibrium price for higher & lower supply.
5- In the market that you have created calculate consumer surplus and producer surplus and show both in one graph.
A. Calculate the total market surplus.
B. What does the total market surplus reflect?
6- In the market that you have created assume any possible price floor and any possible price ceiling.
- Calculate the values of quantity demanded and quantity supplied at each of these prices. 7- Calculate the quantity shortage and quantity surplus resulted from price ceiling and price floor.
8- Show on two separate graphs (use colors if you can).
A. The impact of the price floor
B. The impact of the price ceiling.
9- Add a column to the initial table showing the price elasticity of demand at each price level
A. As price gets lower, what is happening to the elasticity (increasing, decreasing, constant)?
B. Why?
10- At the market equilibrium, what is the price elasticity of demand?
A- In your market; which decision would generate more revenues for the supplier; to raise the
price or to lower it?
B- Why?
2023-03-27