I need help finding the equilibrium of supply and demand values.
1. Based on the information provided in Table 1, create a chart in the space below showing the supply and demand curves for the number of Standard boxes in the United States per day. This information is helpful in knowing how many boxes to produce. After you have examined the graph below, identify the price and quantity at which market equilibrium exists.
2. Based on the information provided in Table 2, create a chart in the space below showing the supply and demand curves for the number of Deluxe boxes in the United States per day. This information is helpful in knowing how many boxes to produce. After you have examined the graph below, identify the price and quantity at which market equilibrium exists.
Questions
- Explain why an understanding of the law of demand and the law of supply is important to being an effective manager.
- Identify the supply factors that are most important in determining the market equilibrium for the Deluxe box.
- Identify the demand factors that are most important in determining the market equilibrium for the Standard box.
Instructions
Largo Global Inc. is a fictious firm that is will be used to allow you to understand the market forces of supply and demand as they impact a company as well as the industry in which the company operates. The company produces two types of boxes, a Standard box and a Deluxe box. These boxes are also produced by many other companies.
In Project 2, you will learn about how to apply the tenets of microeconomics to improve the company’s profitability. In tab 1 after reading the instructions, you will chart the supply and demand curves for the two different boxes. In tab 2 you will focus on the price elasticity of demand for these two products. In tab 3 you will determine at what price the company can maximize the profitability of both boxes.
Follow these steps to complete Project 2:
1. In step 2, you will complete this Excel file by placing your answers to the questions in the boxes provided. You may submit this file as the Milestone submission so you can receive feedback on the accuracy of your calculations.
2. In step 3, you will answer the questions provided in the Word file for this project that will guide/give direction to your analysis. These questions will constitute the core of your report where you will be asked to make key recommendations.
Tab 1 – Supply and Demand Graph
| Table 1 | |||
| Future Supply and Demand for cardboard boxes | |||
| Price per box | Daily US demand of Standard boxes (in billions of boxes per day) | Daily US supply of Standard boxes (in billions of boxes per day) | |
| $17.00 | 2 | 0.1 | |
| $17.20 | 1.8 | 0.2 | |
| $17.40 | 1.6 | 0.3 | |
| $17.60 | 1.4 | 0.4 | |
| $17.80 | 1.2 | 0.5 | |
| $18.00 | 1 | 0.6 | |
| $18.20 | 0.8 | 0.7 | |
| $18.40 | 0.6 | 0.8 | |
| $18.60 | 0.4 | 0.9 | |
| $18.80 | 0.2 | 1 | |
| $19.00 | 0.1 | 1.1 | |
| Question 1: | |||
| Create a Supply and Demand Chart for the Standard box below | |||
| Equilibrium: | |||
| Table 2 | |||
| Future Supply and Demand for cardboard boxes | |||
| Price per box | Daily US demand of Deluxe boxes (in billions of boxes per day) | Daily US supply of Deluxe boxes (in billions of boxes per day) | |
| $30.00 | 2 | 0.3 | |
| $29.50 | 1.8 | 0.4 | |
| $29.00 | 1.6 | 0.5 | |
| $28.50 | 1.4 | 0.6 | |
| $28.00 | 1.2 | 0.7 | |
| $27.50 | 1 | 0.8 | |
| $27.00 | 0.8 | 0.9 | |
| $26.50 | 0.6 | 1 | |
| $26.00 | 0.4 | 1.1 | |
| $25.50 | 0.2 | 1.2 | |
| $25.00 | 0.1 | 1.3 | |
| Question 2: | |||
| Create a Supply and Demand Chart for the deluxe box below | |||
| Equilibrium: | |||
| Equilibrium: | |||
1. Based on the information provided in Table 1, create a chart in the space below showing the supply and demand curves for the number of Standard boxes in the United States per day. This information is helpful in knowing how many boxes to produce. After you have examined the graph below, identify the price and quantity at which market equilibrium exists.
.
Future Supply and Demand for cardboard boxes
Daily US demand of Standard boxes (in billions of boxes per day) 2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0.1 17 17.2 17.399999999999999 17.600000000000001 17.8 18 18.2 18.399999999999999 18.600000000000001 18.8 19 Daily US supply of Standard boxes (in billions of boxes per day) 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1000000000000001 17 17.2 17.399999999999999 17.600000000000001 17.8 18 18.2 18.399999999999999 18.600000000000001 18.8 19
Future Supply and Demand for cardboard boxes
Daily US demand of Deluxe boxes (in billions of boxes per day) 2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0.1 30 29.5 29 28.5 28 27.5 27 26.5 26 25.5 25 Daily US supp ly of Deluxe boxes (in billions of boxes per day) 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1000000000000001 1.2 1.3 30 29.5 29 28.5 28 27.5 27 26.5 26 25.5 25
2. Based on the information provided in Table 2, create a chart in the space below showing the supply and demand curves for the number of Deluxe boxes in the United States per day. This information is helpful in knowing how many boxes to produce. After you have examined the graph below, identify the price and quantity at which market equilibrium exists.
