1. The daily market demand for Fresno State Rocky Road ice cream is given by:

P = 10- 0.5Q ^d , where Q ^d is the quantity, in gallons, and P is price, $/gallon. The supply of Fresno State Rocky Road ice cream is given by: P = 2 + 0.25Q ^s , where Q ^s is the quantity supplied per day

1. Construct a demand schedule and a supply schedule from the two equations. Utilize integer values of Q = 0-20.

Graph the demand and supply curves accurately (graph 1). Label and scale your graph carefully.

C. Determine the equilibrium price and quantity exchanged.

• Graphically (correctly label your axes.)

• Algebraically (show procedure).

D. If setters set the price at $6 dollars per gallon, what is the quantity demanded?

Quantity supplied? What is the magnitude of the surplus or shortage, if any? Wilt price remain at $6 per gallon? Why or why not?

2. Revisit the demand curve for Fresno State Rocky Road ice cream: P = 10 - 0.5Q ^d . What is the value of Q ^d when P is equal to zero?

Construct a table of values for Qd, P, and TR. Have sufficient plot points: Use Qd=integers between 0 and 20. Graph separately the Total Revenue curve associated with the demand for Fresno State Rocky Road ice cream. Use the same horizontal scale that you used in Question 1.

3. Consider the market for cantaloupe. In the scenarios below, only one curve shifts.

1. El Nino weather makes harvesting difficult.

1. There was a shift (in, out) in the (demand, supply) curve.
2. There was movement (in, out) along the (demand, supply) curve.
3. Equilibrium price (increased, decreased).
4. Equilibrium quantity (increased, decreased).
5. Provide a sketch consistent with your answers 1-4.

B. A new study indicates that eating cantaloupe causes baldness.

1. There was a shift (in, out) in the (demand, supply) curve.
2. There was movement (in, out) along the (demand, supply) curve.
3. Equilibrium price (increased, decreased).
4. Equilibrium quantity (increased, decreased).
5. Provide a sketch consistent with your answers 1-4.

C. The price of honeydew melons increases during the cantaloupe marketing season.

1. There was a shift (in, out) in the (demand, supply) curve.
2. There was movement (in, out) along the (demand, supply) curve.
3. Equilibrium price (increased, decreased).
4. Equilibrium quantity (increased, decreased).
5. Provide a sketch consistent with your answers 1-4.

D. New methodology allows farmers to use less irrigation water to grow cantaloupes.

1. There was a shift (in, out) in the (demand, supply) curve.
2. There was movement (in, out) along the (demand, supply) curve.
3. Equilibrium price (increased, decreased).
4. Equilibrium quantity (increased, decreased).
5. Provide a sketch consistent with your answers 1-4.

E. It is learned that eating cantaloupe helps athletes run faster.

1. There was a shift (in, out) in the (demand, supply) curve.
2. There was movement (in, out) along the (demand, supply) curve.
3. Equilibrium price (increased, decreased).
4. Equilibrium quantity (increased, decreased).
5. Provide a sketch consistent with your answers 1-4.

Price: $19.74

Solution: The downloadable solution consists of 10 pages, 974 words and 8 charts.
Deliverable: Word Document