Suppose there is a special metal called vibranium, which came from a meteor. While there is some vibranium available, no one knows how to make more of it.
economics
Description
Each of the following questions involves one “irregular”
curve (i.e., a curve that is either horizontal or vertical).
1. Suppose there is a
special metal called vibranium, which came from a meteor. While there is some vibranium available, no
one knows how to make more of it.
Because governments around the world don’t want too many people buying vibranium,
all the governments put a binding price floor on it. Graph this (otherwise competitive) market
for vibranium.
2. Spock Strawberries
look and taste just like regular strawberries, so consumers don’t care whether
they eat one or the other; they just want to buy the cheapest one. Graph a competitive market for Spock
Strawberries, and show what happens when there is a decrease in the number of
producers.
