Price/Feeder  Quantity Demanded  Quantity Supplied

$300               500                        1800

270                 600                        1700

240                 700                        1600

210                 800                        1500

180                1000                        1400

150                1100                        1300

120                1200                        1200

90                 1300                         1100

60                 1400                         1000

30                 1500                           900

10                 1600                           800

1. Construct a graph showing supply and demand in the electronic dog feeder market, using Microsoft Excel.

2. How are the laws of supply and demand illustrated in this graph? Explain your answers.

3. What is the equilibrium price and quantity in this market?

4. Assume that the government imposes a price floor of $180 in the feeder market. What would happen in this market?

5. Assume that the price floor is removed and a price ceiling is imposed at $90. What would happen in this market?

6. Now, assume that the price of feeders drops by 50%. How would this change impact the demand for feeders? Explain your answer and reconstruct the graph developed in question one to show this change.

7. Assume that incomes of the consumers in this market increases. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.

8. Assume that the number of sellers decreases in this market. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.

9. Explain the difference between a normal good and an inferior good. Would your answers to question 7 change depending on whether this good is a normal or inferior good? Why?