Midterm Graphs

Draw a supply and demand graph. This is the rental market.  Rent control is imposed.  Draw the rent control line in such a way as to prevent the market-clearing price from being attained.  Label the effect.  Label all points on the graph, axes, and market-clearing price. (5 points)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Draw a demand and supply graph, label all axes, and the equilibrium price and quantity.

Once you have done this draw what would happen if there was a decrease in the number of buyers in the market. (5 points)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Draw a demand and supply graph, label all axes, and the equilibrium price and quantity.

The Demand curve is more inelastic than the supply curve. There is a subsidy given to consumers. Label who get what portion of the subsidy and the new price. (5 points)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Draw a supply and demand graph. This is the labor market for unskilled labor.  A minimum wage law is imposed.  Draw the minimum wage line in such a way as to prevent the market-clearing price from being attained.  Label the effect.  Label all points on the graph, axes, and market-clearing price. (5 points)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Draw the graph with where a country has free trade with the rest of the world.  Label the domestic price (DP) and the world price (WP), where WP<DP).  Label domestic production and foreign production (imports).  A tariff is imposed. Label the effect. (5 points)