Assume that this graph is a model used in a perfectly competitive market. Graph

Assume that this graph is a model used in a perfectly competitive market. Graph attached below Explain what a perfectly competitive market means in economic terms. (5 pts) (SLO’s #1 & 3)
Assuming this graph plots supply and demand for a specific product, identify line L1 and line L3. (10 pts – SLO # 1)
Lines L1 and L3 intersect at point ‘a’ (ignore point ‘b’ for now).What term is used to describe point ‘a’. (5 pts) (SLO #1)
Explain in detail what this term means.(5 pts) (SLO #1 & 3)
In analyzing this graph for L1 and L3, explain what would occur if a supplier attempted to sell this product for $20. (5 pts) (SLO’s 1, 2, 3)
Assume that line L1 shifts outward and to the right to line L2. Identify and explain two different occurrences which would cause this shift. (5 pts) (SLO’s 1 & 3)
This shift from L1 to L2 shows L2 intersecting L3 at a new point: point ‘b’. Explain what has occurred in terms of quantity supplied and the new price, i.e. why have both quantity and price changed as illustrated at point ‘b’? (10 pts) (SLO’s 1,2,3)
If this graph represented supply and demand analysis for a product you were selling, explain how you would use this model to predict consumer behavior (you may use varying quantity/price relationships to support your explanation). (25 pts) (SLO’s 2 & 3)
Student Learning Outcomes: 1. Demonstrate understanding of classic microeconomic principles and concepts (such as supply and demand, competition and monopoly, and profit maximization) in quizzes, tables, graphs, and analytical essay responses. 2. Utilize tools and theories to explain consumer behavior. 3. CriterionAccomplished
14-17
Very Good
12-13
Competent
11
Developing
10 or below
Interpretation of Graphical Model Identifies all portions of a supply and demand graph including a clear and accurate explanation of ‘market equilibrium’ as it applies to supply and demand theory in a perfectly competitive market.Mostly clearly and accurately identifies all portions of a supply and demand graph including a clear and accurate explanation of ‘market equilibrium’ as it applies to supply and demand theory in a perfectly competitive market.Identifies most portions of a supply and demand graph with one to two major errors and/or a clear but not wholly accurate explanation of ‘market equilibrium’ as it applies to supply and demand theory in a perfectly competitive market. Fails to adequately identify and explain most portions of the supply and demand graph as well as the inability to explain clearly the concept of ‘market equilibrium’ as it applies to supply and demand theory in a perfectly competitive market.
Application of Graphical Model to Project Consumer BehaviorClearly and accurately explains consumer behavior in a perfectly competitive market by analyzing a graphical model of ‘supply’, ‘demand’, and ‘equilibrium market price’.Mostly an accurate explanation of consumer behavior in a perfectly competitive market by analyzing a graphical model of ‘supply’, ‘demand’, and ‘equilibrium market price’ with minor errors in clarity. Explains consumer behavior in a perfectly competitive market by analyzing a graphical model of ‘supply’, ‘demand’, and ‘equilibrium market price with lapses in both accuracy and clarity.’ Fails to clearly and accurately explain consumer behavior in a perfectly competitive market by analyzing a graphical model of ‘supply’, ‘demand’, and ‘equilibrium market price Written Articulation of Concepts Presented in Graphical Model Responses are logically organized, clear, and concise with only minor errors in mechanics (grammar, spelling, punctuation). All responses are mostly logically organized, fairly clear and concise with fairly good use of writing mechanics. Responses lack some organizational skills and contain several errors in writing mechanics. Inaccurate, incomplete, and/or unclear organizational skills containing numerous errors in mechanics. TOTAL SCORE (POSSIBLE 70 PTS)_______________________________