1. Locate the original equilibrium point, graphically identifying both the original equilibrium price and quantity. Clearly label the equilibrium price as P1 and equilibrium quantity as Q1. 2. Now assume that supply decreases. How is this represented on the graph? Clearly show and label the changes. 3. Locate the new equilibrium point. What happens to the equilibrium price when supply decreases? What happens to the equilibrium quantity? Clearly label the new equilibrium price as P2 and the new equilibrium quantity as Q2. 4. Finally, discuss the idea of price as a rationing device in the context of this example. (Suggested response length: one paragraph or 3 to 4 sentences).
Place this order or similar order and Get High Quality Custom Made Content. “ ” for 20% discount
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more