A twopage 500word paper with a graph Consider the following

A two-page (500-word) paper with a graph Consider the following scenarios. Think about how each scenario would affect the price of khaki pants. A new technology reduces the time it takes to make a pair of khaki pants, The price of the doth used to make khaki pants falls, The wage rate paid to garment workers increases, The price of jeans Increases. People\'s incomes increase. Draw a demand-supply graph and label the axes with the price and quantity of khaki pants Create one graph that shows each of the demand-supply curves for the five scenarios listed in Step 1. Use (free) online graphing software such as \"Padowan\" to create your graph. Follow the instructions on the website to leam how to create and manipulate the graph. Use five different colors to represent each of the five scenarios. Save the graph to your computer as a jpeg file. Copy and paste the jpeg into the assignment document that you deliver to your instructor. Clearly identify your finished graph. Address the following statements related to the graph Below the graph, in the same document, address the following questions relating to your graph: Does each event change demand, supply, both, or neither? Explain your choice. Does the event increase or decrease demand and or supply? Explain your answer. How does this change in demand and/or supply affect the equilibrium prices and quantity within the Compare the new demand curve or supply curve by drawing it on the same graph, o Find the new equilibrium and compare it with the original one in terms of equilibrium price

Solution

1.

New technology: Reduction in time reduces the cost of production, which leads to decrease in price.

Cloth: This is the raw material of the product. Fall in price of raw material reduces the cost of production and price.

Wage: This is the labor expense. Increase in wage rate increases the cost of production and price.

Jeans: This is a substitute good of khaki pant. If the price of jeans is increased the demand of khaki pant also would be increased. It leads to decrease in price of khaki pant.

Income: Increase in income increases the demand and price of product, since its supply is limited.