Final Project: An analysis of supply and demand data with supporting information regarding market conditions and possible changes in those conditions.
You are an economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies. The company has come under new ownership and management and undergoing changes in its product lines and operating structure. As an economist, your responsabilities including examing the market factors that affect success or failure of a product including the supply and demand for the product, market conditions, and the behavior of competitiors with similar products. Your surpervisor, Jorge, has assigned you task of evaluating a new product. The new product, oven mittens, has several competitiors in the marketplace,but your company will be using a new patented material that provides protection from heat and maintains a great deal of flexibility. The supply and demand functions for over mittens are as follows: Qd=45-6.9P Qs=-15+10P Where Qd is quantitydemand, Qs the quantity supplied and P the price. TASKS: Jorge has asked your to research the market provide detailed responses to the following questions: – What is the equilibrium price and quality for oven mittens? Using Microsoft excel, construct a table that shows the quality demanded, the quantity supplied and surplus or shortage associed with prices from $2 to $5.55(use appropriate intervals) Indicate the level at which equilibrium is achieved. Graph the data indicating the equilibrium level the areas of shortage or surplus. – If a price floor were establishied at $4 what would happen in this market? Explain your answer. – What will happen in this market? Explain your answer. – What will happen to the demand curve for the product if the following changes occur? Answer separately for each change, assuming each event to be independent of the other: – The price of the substitute good A increases. – The price of complementary good C increases. SUBMISSION Details: – Compile your calculations and graph in a Microsoft excel spredsheet name as su MBA5004 W1 A3 last name.- first initial.xls and your analysis in a Microsoft word document name as. CRITERIA: Performed all necessary calculations by accurately applying theoretical concepts. – Presented data in a correctly structured table and in a correctly designed graph. – Estimated the effects of given conditions by applying theoretical concepts and explain the reasoning. -Used correct spelling grammar, and professional vocabulary. Formatted the paper and cited all sources using APA format.