Title [204] Unit 3 Assignment Template As a marketing specialist working for a production company, it is your job to explain to investors how the

Title

[204] Unit 3 Assignment Template

Don't use plagiarized sources. Get Your Custom Assignment on
Title [204] Unit 3 Assignment Template As a marketing specialist working for a production company, it is your job to explain to investors how the
From as Little as $13/Page

As a marketing specialist working for a production company, it is your job to explain to investors how the current status of the supply will meet the changing demand for products. Based on the following Assignment questions compile answers that effectively addresses the hypothetical examples provided in the Assignment.

This Assignment deals with the Production Possibility Frontier and market forces of supply and demand models as well as the impacts of government policies on the interactions of supply and demand in the market economy.

1) Given the table below, graph the demand and supply curves for flashlights. Make certain to label the equilibrium price and equilibrium quantity.

Price

Quantity Demanded Per Month

Quantity Supplied Per Month

$5

6,000

10,000

$4

8,000

8,000

$3

10,000

6,000

$2

12,000

4,000

$1

14,000

2,000

a. What are the equilibrium price and the equilibrium quantity?

b. Suppose the price is currently $5. Explain what problem would exist in the market and calculate the size of that problem. What would you expect to happen to price?

c. Suppose the price is currently $2. Explain what problem would exist in the market and calculate the size of the problem. What would you expect to happen to price?

2) Consider supply and demand for Maine lobsters indicated in the following tables to answer questions from ae below. Suppose that the supply schedule of Maine lobsters is as follows:

Price of Lobster per Pound

Maine Quantity of Lobster Supplied (pounds)

$25

800

$20

700

$15

600

$10

500

$5

400

First, assume that Maine lobsters can be sold only in the United States. The U.S. demand schedule for Maine lobsters is as follows:

Price of Lobster per Pound

USA Quantity of Lobster Demanded (pounds)

$25

200

$20

400

$15

600

$10

800

$5

1,000

a. Looking at both the schedules of supply and demand, as well as the graph of the demand and supply curve for Maine Lobsters, what is the equilibrium price of lobsters and the equilibrium quantity of lobsters demanded and supplied at that price?

b. Second, suppose that Maine lobsters can also be sold in France. The French demand schedule for Maine lobsters is as follows:

Price of Lobster per Pound

Quantity of Lobster Demanded (pounds)

$25

100

$20

300

$15

500

$10

700

$5

900

c. What is the demand schedule for Maine lobsters now that French consumers can also buy them?

d. Using the combined U.S. and French demand schedule, the U.S. demand schedule and the supply schedule, and the graph below, analyze the change in the market for lobsters. What will happen to the price at which fishermen can sell lobster? What will be the final output of lobsters?

e. What will happen to the price paid by U.S. consumers? What will happen to the quantity consumed by U.S. consumers?

3) Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for potato production, there are fewer resources available for catching fish.

Year

Quantity of Potatoes (Pounds)

Quantity of Fish (Pounds)

A

1,000

0

B

800

300

C

600

500

D

400

600

E

200

650

F

0

675

Examine the Maximum annual output options table above and the resulting Production Possibility Frontier Graph below and answer questions from a-e.

a. Can Atlantis produce 500 pounds of fish and 800 pounds of potatoes? Explain.

b. What is the opportunity cost of increasing the annual output of potatoes from 600 to 800 pounds?

c. What is the opportunity cost of increasing the annual output of potatoes from 200 to 400 pounds?

d. Can you explain why the answers to parts b and c are not the same?

e. What does this imply about the slope of the production possibility frontier?

4) Now that you have segmented the components of the changes in supply and demand and the ability to meet demand, explain how the current status of the supply will meet the changing demand for the products, and the change in the production possibilities will be able to meet the market demand. Unit 3 [BU204]

Page 1 of 6

Unit 3 Assignment: Supply and Demand Model
and PPF

1. Your Assignment should have a cover sheet with the following information:

Your Name
Course Number
Section Number
Date

2. You may submit your Assignment using the Unit 3 Assignment template.

3. Your answers should follow APA formatting by being in double-spaced paragraph format, with
citations to your sources and, at the bottom of your last page, a list of references. Your answers
should also be in Standard English with correct spelling, punctuation, grammar, and style.

4. Respond to the questions in a thorough manner, providing specific examples of concepts, topics,

definitions, and other elements asked for in the questions. Your answers should be highly

organized, logical, and focused.

Assignment

As a marketing specialist working for a production company, it is your job to explain to investors how
the current status of the supply will meet the changing demand for products. Based on the following

Assignment questions compile answers that effectively addresses the hypothetical examples
provided in the Assignment.

This Assignment will assess your knowledge based on the following outcome:

BU204-1: Describe the importance of Production Possibility Frontier, the Circular Flow Diagram, and

the Supply and Demand models in the market economy.

This Assignment deals with the Production Possibility Frontier and market forces of supply and
demand models as well as the impacts of government policies on the interactions of supply and
demand in the market economy.

https://kapextmediassl-a.akamaihd.net/business/204/1902C/Assignment_Templates/Unit3_Template.docx

Unit 3 [AB204]

Page 2 of 6

1) Given the table below, graph the demand and supply curves for flashlights. Make certain to label
the equilibrium price and equilibrium quantity.

Price Quantity Demanded Per

Month

Quantity Supplied Per

Month

$5 6,000 10,000

$4 8,000 8,000

$3 10,000 6,000

$2 12,000 4,000

$1 14,000 2,000

a. What are the equilibrium price and the equilibrium quantity?

b. Suppose the price is currently $5. Explain what problem would exist in the market
and calculate the size of that problem. W hat would you expect to happen to price?

c. Suppose the price is currently $2. Explain what problem would exist in the market
and calculate the size of the problem. W hat would you expect to happen to price?

2) Consider supply and demand for Maine lobsters indicated in the following tables to answer
questions from ae below. Suppose that the supply schedule of Maine lobsters is as follows:

Price of Lobster per
Pound

Maine Quantity of Lobster
Supplied (pounds)

$25 800

$20 700

$15 600

$10 500

$5 400

First, assume that Maine lobsters can be sold only in the United States. The U.S. demand schedule
for Maine lobsters is as follows:

Price of Lobster per
Pound

USA Quantity of Lobster Demanded
(pounds)

$25 200

$20 400

Unit 3 [AB204]

Page 3 of 6

Price of Lobster per
Pound

USA Quantity of Lobster Demanded
(pounds)

$15 600

$10 800

$5 1,000

a. Looking at both the schedules of supply and demand, as well as the graph of the
demand and supply curve for Maine Lobsters, what is the equilibrium price of lobsters

and the equilibrium quantity of lobsters demanded and supplied at that price?

b. Second, suppose that Maine lobsters can also be sold in France. The French demand

schedule for Maine lobsters is as follows:

Price of Lobster per

Pound

Quantity of Lobster Demanded

(pounds)

$25 100

$20 300

$15 500

$10 700

$5 900

c. What is the demand schedule for Maine lobsters now that French consumers can

also buy them?

d. Using the combined U.S. and French demand schedule, the U.S. demand schedule

and the supply schedule, and the graph below, analyze the change in the market for

lobsters. W hat will happen to the price at which fishermen can sell lobster? W hat will be

the final output of lobsters?

e. What will happen to the price paid by U.S. consumers? W hat will happen to the

quantity consumed by U.S. consumers?

3) Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch

fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and
fish that can be produced. Obviously, given their limited resources and available technology, as they
use more of their resources for potato production, there are fewer resources available for catching

fish.

Unit 3 [AB204]

Page 4 of 6

Year Quantity of Potatoes
(Pounds)

Quantity of Fish (Pounds)

A 1,000 0

B 800 300

C 600 500

D 400 600

E 200 650

F 0 675

Examine the Maximum annual output options table above and the resulting Production Possibility
Frontier Graph below and answer questions from a-e.

a. Can Atlantis produce 500 pounds of fish and 800 pounds of potatoes? Explain.

b. What is the opportunity cost of increasing the annual output of potatoes from 600 to 800
pounds?

c. What is the opportunity cost of increasing the annual output of potatoes from 200 to 400

pounds?

Unit 3 [AB204]

Page 5 of 6

d. Can you explain why the answers to parts b and c are not the same?

e. What does this imply about the slope of the production possibility frontier?

4) Now that you have segmented the components of the changes in supply and demand and the

ability to meet demand, explain how the current status of the supply will meet the changing demand
for the products, and the change in the production possibilities will be able to meet the market
demand.

Directions for Submitting Your Assignment

Before you submit your Assignment, you should save your work on your computer in a location and
with a name that you will remember. Make sure your Assignment is in the appropriate template
provided. Then, when you are ready, you may submit to the Dropbox.

Unit 3 Assignment: Supply and Demand Model and PPF Points
Possible

Points
Earned

Content and Analysis

Problem #1

Correctly explained the equilibrium values. 5

Correctly explained the excess demand. 5

Correctly explained excess supply. 5

Problem #2

Correctly identified equilibrium price and quantity. 5

Provided a demand schedule for the combined demand of U.S. and
French consumers.

5

Identified the new market price and quantity supplied. 5

Identified the new price U.S. consumers pay and the new quantity
demanded.

5

Problem #3

Identified the infeasible production. (a) 5

Correctly calculate the opportunity cost. (b) 5

Correctly calculate the opportunity cost. (c) 5

Explained the differences in opportunity costs. (d) 5

Explained the slope of PPF. (e) 5

Unit 3 [AB204]

Page 6 of 6

Unit 3 Assignment: Supply and Demand Model and PPF Points
Possible

Points
Earned

Problem #4

Explained how changes in the production possibilities (supply) meet the
change in the market demand.

10

Writing style, grammar, and APA formatting. 5

Total

75