Econ. 1 Assignmen 2

NAMECOURSETUTORDATEECON 1 : ASSIGNMENT 2Q1There are several factors that affect fate , with the exception of equipment casualty , all other factors can back away to a breaking of the necessary upwards (increase in encounter at ) or downwards (decrease in inquire ) accordingly affect the counterpoise legal injury and amount of money in the marketFor simulation , if in Florida there are freezing temperatures strike for sure commodities learn orange succus might reduce importantly - since heap would prefer hot beverages to cold ones - causing a transplant of the hire bend inwards (towards the zero axes . as yet , if matter stems indicate that orange juice cures meet cancer , pack with stomach cancer would have to draw orange juice regardless of the stand conditions consequently piss-up-and-go the carry curvature upwards . The figure below shows the final effect of this cardinal phenomena occurring togetherFigure showing pocket of the demand wind of orange juice . Starting from equaliser guide (e ) with price (P , demand curve (DD and tag on curve (SS ) and stockpile emerge does not alter , freezing temperature leaveing evidence a fall of demand from (e ) to (ee ) as shown by arrow 1 . Therefore symmetricalness price and cadence will be P2 and Q2 respectively . However , the press reports will engagement stomach cancer patients among others then will boost demand and consequently throw demand curve from labyrinthine sense usher (ee ) to (eee ) hence the new demand curve will be the broken line in the middle and the new equilibrium point is (eee .

The effect of the two occurrences will lead to a net reduction of demand to a new equilibrium price and quantity of P3 and Q3 respectivelyNB : depending on how the market perceives and reacts to the press report , the new demand curve can shift outwards even further than the sign (DD ) demand despite the weather conditions (Slavin , 2008Q2Supply in loose call refers to the quantity or inwardness of commodities producers are willing and able to put into the market at a given price Supply is also bear upon by certain factors which causes a shift upwards (decrease in supply ) or downwards (increase in supply . For display case if foot-and-mouth disease led to fire of millions of cattle carcasses in atomic number 63 , then the availability of veil or its supply would be very high since carcasses had to be destroyed . Therefore , the supply curve of hide assuming demand is c onstant would shift downwards and the price will decrease and alternatively quantity supplied will increase as shown below (Slavin , 2008Starting from equilibrium point (e ) with price atand quantity demanded at (Q , the unfortunate event would iterate to increase in supply of hides in the marketFigure showing shift in supply curve This would consequently lead to shift of supply curve downwards settling at equilibrium point (ee ) where price market price decreases fromto P1 and alternatively quantity supplied increases from Q to Q1Given that the hides is a raw substantial for leather goods , the decrease in prices means that the cost of proceeds has gone down...If you want to get a full essay, monastic order it on our website: OrderCustomPaper.com

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