Draw by Hand:

• draw an S&D graph with the MC and DMU (WTP) curves demonstrating equilibrium
  • label the axes and identify E, Qp and Qe
• draw an S&D graph with a price ceiling
  • identify Qp, Qe, Qs, Qd, and the ceiling price
  • label axes
  • include a title of the graph
• draw an S&D graph with a price floor
  • identify Qp, Qe, Qs, Qd, and the floor price
  • label axes
  • include a title of the graph
• draw an S&D graph where D=P=MR and price is fixed
  • label everything and title the graph "Competitive Market in the Long Run"
  • explain: what would cause Qe to change?
• lastly, draw an S & D graph and show consumer surplus and producer surplus
  • shade or color CS using a different pattern/color for PS
  • write "CS" in the shape for consumer surplus and write "PS" in the shape for producer surplus
  • label Qe and Pe, label axes, and title the graph "Total Surplus"