1) Suppose our trade relations with China improve. Draw a Supply and Demand graph for a hypothetical company's stock, assuming that the imports and exports goods with China are a key influencer in the stock price (e.g., WalMart, GM, etc.). Please draw a supply and demand graph for the company's stock prior to and after the change in trade relations, with the demand curves clearly labeled (e.g., curve prior change and curve after change). Explain?

(a) any movement along the supply or demand curve and?

(b) shift in supply or demand curve (one sentence). Note: a company's stock, like any other product, has a demand and supply curve.

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2) Suppose Americans decide to dramatically reduce Texas as a favored vacation destination. Use a demand and supply graph to analyze the impact on the price and quantity and the equilibrium quantity demanded of lodging units (e.g., hotel room, BnB units, etc.). Explain in one sentence by describing whether Demand or Supply changed, and whether it increased or decreased. For both of the above questions, please provide a supply/demand curve graph with the original equilibrium and show the resulting (1) movement along the supply and/or demand curve(s) and/or (2) the shift of the supply and/or demand curve(s). Clearly label any movement along the demand/supply curve or shift in the demand/supply curve, showing both the original Price and Quantity and the resulting Price and Quantify. (See graph below as example of original Price and Quantity).

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Transcribed Image Text:

P P1 0 Q1 S D Q 32 P P1 0 Q1 S D Q 32

Answer rating: 100% (QA)

1 If our trade relations with China improve Demand for the companys stock will rise ... View the full answer