ECON 103 ETSU Market for Cigarettes Horizontal Demand Curve Questions

Description

1) Suppose the market for cigarettes in the first quarter of the year 2021 was characterized by
Qd = 180 – 2P   [Demand]
Qs = 4P   [Supply]
In the second quarter of 2021, the supply curve shifted to
Qs = 4P – 60   [Supply]
Use this information to compare the equilibrium price, quantity and revenue between the first and second quarters of 2021 in the market for cigarettes.
2) Is the following statement true or false? Explain.
A horizontal demand curve represents a product whose demand has a price elasticity of demand equal to zero at all prices.

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Suppose the market for cigarettes in the first quarter of the year 2021 was characterized by
Qd = 180 – 2P [Demand]
=
Qs = 4P [Supply]
=
In the second quarter of 2021, the supply curve shifted to
Qs = 4P – 60 (Supply]
=
Use this information to compare the equilibrium price, quantity and revenue between the first and second quarters of
2021 in the market for cigarettes.
CALA Rubric (2) (12)
Criteria
Ratings
Pts
4 pts
Comprehension:
comprehend concepts relevant to questions
5 pts
90th
Percentile
3 pts
Median
75th
Percentile
2 pts
25th
Percentile
1 pts
10th
Percentile
O pts
Missing
5 pts
4 pts
Application:
Student’s answer reflects ability to apply
5 pts
90th
3 pts
Median
75th
Percentile
2 pts
25th
Percentile
1 pts
10th
Percentile
O pts
Missing
5 pts
Percentile
3 pts
Logic:
Student’s answer reflects ability to build a
logical explanation.
5 pts
90th
Percentile
4 pts
75th
Percentile
Median
2 pts
25th
Percentile
1 pts
10th
Percentile
O pts
Missing
5 pts
5 pts
4 pts
3 pts
Accuracy:
accurately derive a conclusion.
Median
90th
Percentile
75th
Percentile
2 pts
25th
Percentile
1 pts
10th
Percentile
O pts
Missing
5 pts
Is the following statement true or false? Explain.
“A horizontal demand curve represents a product whose demand has a price elasticity of demand equal to zero at all
prices.”
CALA Rubric (2) (13)
Criteria
Ratings
Pts
Comprehension:
comprehend concepts relevant to questions
5 pts
90th
Percentile
4 pts
75th
Percentile
3 pts
Median
2 pts
25th
Percentile
1 pts
10th
Percentile
O pts
Missing
5 pts
4 pts
Application:
Student’s answer reflects ability to apply
5 pts
90th
Percentile
3 pts
Median
75th
Percentile
2 pts
25th
Percentile
1 pts
10th
Percentile
O pts
Missing
5 pts
4 pts
1 pts
Logic:
Student’s answer reflects ability to build a
logical explanation.
5 pts
90th
Percentile
3 pts
Median
75th
Percentile
2 pts
25th
Percentile
10th
Percentile
O pts
Missing
5 pts
5 pts
4 pts
3 pts
O pts
Accuracy:
accurately derive a conclusion.
Median
90th
Percentile
75th
Percentile
2 pts
25th
Percentile
1 pts
10th
Percentile
Missing
5 pts

attachment

2 Questions

Tags:
Price elasticity of demand

supply curve

equilibrium price

horizontal demand curve

Market for cigarettes

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