1. The following table summarizes the market for new textbooks at the NCC Bookstore. (32 points)...

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1. The following table summarizes the market for new textbooks at the NCC Bookstore. (32 points) Quantity Supplied 40000 Price $175 $200 80000 $225 120000 $250 160000 $275 200000 Quantity Demanded 160000 140000 120000 100000 80000 b. What are the equilibrium price and quantity? Show the point of equilibrium on your graph. c. At the price of $175, state whether there is a shortage or surplus of textbooks and how large this shortage or surplus is. d. At the price of $275, state whether there is a shortage or surplus of textbooks and how large this shortage or surplus is. e. If the government intervened and stated that the price for the textbooks was to be set at $175, would they be setting a price ceiling OR a price floor, so as to impact the market as per the definition of what a price control is intended to do? Explain. f. Suppose there is a technological advancement in the production of economics textbooks. Show how this would impact your graph for the economics textbooks at the NCC Bookstore. In other words, show if the supply curve or demand curve shifts and show the direction in which the curve will shift. Label what you did as T and explain what has occurred on the graph to the equilibrium price and quantity and also explain why you chose to shift this curve. g. Suppose the bookstore has an increase in the number of used economics textbooks to sell. As you know the used textbooks (a substitute good) are less expensive than the new textbooks. Show how this increase in the number of used economics textbooks would impact your graph for the new economics textbooks at the NCC Bookstore. In other words, show if the supply curve or demand curve shifts and show the direction in which the curve will shift. Label what you did as U and explain what has occurred on the graph to the equilibrium price and quantity and also explain why you chose to shift this curve. 1. The following table summarizes the market for new textbooks at the NCC Bookstore. (32 points) Quantity Supplied 40000 Price $175 $200 80000 $225 120000 $250 160000 $275 200000 Quantity Demanded 160000 140000 120000 100000 80000 b. What are the equilibrium price and quantity? Show the point of equilibrium on your graph. c. At the price of $175, state whether there is a shortage or surplus of textbooks and how large this shortage or surplus is. d. At the price of $275, state whether there is a shortage or surplus of textbooks and how large this shortage or surplus is. e. If the government intervened and stated that the price for the textbooks was to be set at $175, would they be setting a price ceiling OR a price floor, so as to impact the market as per the definition of what a price control is intended to do? Explain. f. Suppose there is a technological advancement in the production of economics textbooks. Show how this would impact your graph for the economics textbooks at the NCC Bookstore. In other words, show if the supply curve or demand curve shifts and show the direction in which the curve will shift. Label what you did as T and explain what has occurred on the graph to the equilibrium price and quantity and also explain why you chose to shift this curve. g. Suppose the bookstore has an increase in the number of used economics textbooks to sell. As you know the used textbooks (a substitute good) are less expensive than the new textbooks. Show how this increase in the number of used economics textbooks would impact your graph for the new economics textbooks at the NCC Bookstore. In other words, show if the supply curve or demand curve shifts and show the direction in which the curve will shift. Label what you did as U and explain what has occurred on the graph to the equilibrium price and quantity and also explain why you chose to shift this curve.

Answer rating: 100% (QA)

Answer b To find the equilibrium price and quantity we need to locate the point where the quantity s... View the full answer