Demand and Supply

Please Analyze and explain the theory of Demand and Supply (chapter 2) and create the graph for demonstrating the following scenario and answer the questions:

  • G.R. Dry Foods Distributors specializes in the wholesale distribution of dry goods, such as rice and dry beans. The firm’s manager is concerned about an article he read in this morning’s Wall Street Journal indicating that the incomes of individuals in the lowest income bracket are expected to increase by 10 percent over the next year. While the manager is pleased to see this group of individuals doing well, he is concerned about the impact this will have on G.R. Dry Foods.
  • Please explain what will happen to the price of the products G.R. Dry Foods sells?
  • Why? Use Intext citation that matches peer reviewed references

Question 2

Please analyze the following scenario by incorporating your learning from Chapters 5 & 6 of your textbook and answer the question.

  • Recently, the Boeing Commercial Airline Group (BCAG) recorded orders for more than 15,000 jetliners and delivered more than 13,000 airplanes. To maintain its output volume, this Boeing division combined efforts of capital and more than 90,000 workers. Suppose the European company Airbus enjoys a similar production technology and produces a similar number of aircraft but that labor costs (including fringe benefits) are higher in Europe than in the United States. (Chapter 5: Problem14)
  • Please explain whether workers at Airbus have the same marginal product as workers at Boeing? Use Intext citation that matches peer reviewed references
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