Question 1 On separate demand and supply diagrams for bread‚ sketch the effects of the following: Pricewe Pricewe (a) a rise in the price of wheat S1 S1 S S Quantity Quantity As the sketch shown above the supply curve is shift to the left‚ the price of the bread rises the quantity of sold will fall. Wheat is use in a flour to make a bread‚ therefore if the wheat price goes up the cost of producing will also increase. Hence the shift of the supply curve is to the left. Price
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The market forces of Supply and Demand. a.Plotting the Demand and supply Curve. The following Table Illustrates the values used in the plotted graphs. Price Per Unit ($)Quantity Demanded Quantity Supplied 81106284362441520.560 The resulting graph is illustrated below. Demand and Supply Curves for Comic Books 01234567890 1 2 3 4 5 6 7 8 9 10 Quantity of comic books P r i c e o f e a c h c o m i c b o o k DemandSupply b.Finding the Equilibrium point Plotted on the graph
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Question 1 The table gives the supply schedules for jet-ski rides by three owners: Rick‚ Sam‚ and Tom‚ the only suppliers of jet-ski rides. Price (dollars per ride) | Quantity supplied (rides per week) | | Rick | Sam | Tom | 10.00 | 0 | 0 | 0 | 12.50 | 5 | 0 | 0 | 15.00 | 10 | 5 | 0 | 17.50 | 15 | 10 | 5 | 20.00 | 20 | 15 | 10 | a. What is each owner’s minimum supply-price of 10 rides a day? At the minimum supply price of $15‚ Rick determines to supply 10 rides a day b. Which owner has
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Aggregate Demand and Aggregate Supply 11. For each of following events‚ explain the short-run and the long-run effects on the output and the price level‚ assuming policymakers take no action. (a) The stock market declines sharply‚ reducing consumers’ wealth. AS1 AS2 AD1 AD2 Y2 Y1 P1 P2 P3 LRAS A B C P AD-AS diagram Output 0 Since the stock market declines sharply‚ the people’ wealth are being affected. In short run‚ it leads to a fall in aggregate demand which would
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How many fruits and timbers would be produce and consume in each country? g. Show that by trading each country can consume more than its PPF. 2. Explain how each of the following situations would affect a nation’s production possibilities curve. a. A technological innovation allows the nations to more efficiently convert solar energy into electricity. b. A prolonged recession increases the number of unemployed workers in the nation. c. A category 5 hurricane destroy over 40% of
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Demand As the broadcast of the Barclays Premier League (BPL) was being cross-carried between SingTel and Starhub‚ the demand for SingTel’s mioTV decreased. The SingTel had differentiated its sports package from Starhub as they are able to broadcast the UEFA Champions league and UEFA Europa League. It was quoted from The New Paper Apr 27 2013‚ “We will ensure that existing SingTel customers who are on contracts will not be affected. However‚ those who wish to watch BPL on its own will most likely
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main factor influencing the success of takeovers and mergers? Leardership is influencing and directing the performance of a group members towards achieving the goals of the organisation. Leadership is the main factor influencing the success of takeovers and mergers because Staff who has strong leadership skills will motivate and insipre other employees to achieve the goals and objectives of the firm. This is well illustrated in the acquisition made by Kellogg’s. One of the key factors influencing
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Demand and supply analysis of gold Gold is a precious metal which holds great value. It is yellowish in colour and it is used in making jewels and other valuable assets. It represents a store of wealth and economic strength to the world and is a strong force in international monetary command. Gold is the “backbone of all economies” (Baber et al.‚ 2015‚ p. 1). The investment role of gold has become significant in recent times after the 2008 financial crisis. The gold possesses strong‚ imperishable
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MICROECONOMICS ASB-2301 ---- EXERCISES – HANDOUT 1 1. Demand and supply (A) a) Suppose that there is an announcement that chocolate causes cancer. What would happen to equilibrium price and quantity in the market for Godiva chocolate? b) Suppose that the price of Hershey’s chocolate increases. What would happen to equilibrium price and quantity in the market for Godiva chocolate? c) Suppose that the price of sugar increases. What would happen to equilibrium price and quantity in the market
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Supply and Demand is one of many important concepts that gorvern our society’s economics. People encounter such concept not only at their workplaces‚ but also in their daily life. People are constantly switching their role in this game of play and catch. One minute they are buyers with demands ranging from housewives’ kitchen utensils to celebrities’ multi million dollars necklaces; the next‚ they turn into suppliers that handle products such as one’s toothpaste to luxurious services such as that
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