Question 11, 12 and Problem 7
7. Illustrate the example of the world sugar market with supply and demand diagrams. Be sure to show how the relative shifts in supply and demand have led to the reduction in the world price of sugar.
11. Following are three sample equations. Plot them on a graph in which Q is on the vertical axis and P is on the horizontal axis. Then transform these equations so P is expressed in terms of Q and plot these transformed equations on a graph in which P is on the vertical axis and Q is on the horizontal axis. a. Q = 250 – 10 P b. Q = 1,300 – 140 P c.Q=45-.5
12. Use the following equation to derive a demand schedule and a demand curve. What types of products might exhibit this type of nonlinear demand curve? Explain. Q = 100 P – 0.3