You will be using the following information to create a supply and demand graph for a product you are contemplating producing. You have done some research and found the following to be true for your demand/supply data: Demand: 75 units @ $12.50 150 units @ $10.00 350 units @ $8.00 550 units @ $6.50 Production of the items costs you as follows: 175 units @ $5.75 325 units @ $8.00 400 units @ $9.00 550 units @ $10.50 Step 1A: Create a demand graph for the above information (2 points) Step 1B: Create a supply graph for the above information (2 points) NOTE: THE GRAPHS ARE ON THE SAME GRAPHING PLOT! Step 2: Indicate where the equilibrium point is located. (2 points) Step 3: If a new product gets launched that is similar to your idea, explain what potentially would happen to your demand curve. (5 points) This needs to be a minimum of 3 sentences include the why and what it would look like. Making some presumptions is totally fine, as is drawing in a new demand curve based on some data you determine. (Not needed, but can do this if you want) Step 4: If you decided to go all in and produce the 550 units and sell them at your cost of $10.50, do you think you would sell them all? Why or Why not? If not, approximately how many do you think you would sell and how many would you have left in your inventory? (4 points total)
