. State the law of demand. Why is price inversely 2. You•Jt given the following individual demand tables for comic books. (L04-1) Alex
YO
Price $ 2 4 6 8 10 12 14 16 John 4 4 0 0 0 0 0 0 LIZ 36 32 28 24 20 16 12 8 24 20 16 12 8 4 0 0
a. Determine the market demand table. b. Graph the individual and market demand curvemas. C. If the current market price is $4, what’s total rket demand? What happens to total market demand if price rises to $8? d. Say that an advertising campaign increases demand by 50 percent. What will happen to the individual and market demand curves? 3. List four shift factors of demand and explain how each affects demand. (L04-1) 4. Distinguish the effect of a shift factor of demand on the demand curve from the effect of a change in price on the demand curve. (L04-1) i. State the law of supply. Why is price directly related to quantity supplied? (L04-2) Mary has just stated that normally, as price rises, supply will increase. Her teacher grimaces. Why? (L04-2)
List four shift factors of supply and explain how each affects supply. (L04-2) Derive the market supply curve from the following two individual supply curves. (L04-2)
$10