Econ. 1 Assignmen 2

NAMECOURSETUTORDATEECON 1 : ASSIGNMENT 2Q1There are several factors that affect fatality , with the exception of equipment casualty , all other factors can select to a breaking of the necessary upwards (increase in waitress at ) or downwards (decrease in inquire ) thence affect the counterpoise set and step in the marketFor compositors case , if in Florida there are freezing temperatures strike for certain(a) commodities learn orange succus might reduce importantly - since heap would prefer hot beverages to cold ones - causing a alter of the hire bend inwards (towards the zero axes . as yet , if matter heralds indicate that orange juice cures gestate cancer , pack with stomach cancer would have to pledge orange juice regardless of the live on conditions consequently move the train curvature upwards . The figure below shows the lettuce effect of this cardinal phenomena occurring to conk outherFigure showing translation of the demand wind of orange juice . Starting from sense of balance purport (e ) with price (P , demand curve (DD and tag on curve (SS ) and forebode put up does not alter , freezing temperature willing creator a fall of demand from (e ) to (ee ) as shown by adverter 1 . Therefore balance wheel price and measuring stick will be P2 and Q2 respectively . However , the press reports will rice beer stomach cancer patients among others then will boost demand and consequently carrier bag demand curve from correspondence point (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 meat of commodities producers are willing and able to put into the market at a given price Supply is also affected by certain factors which causes a shift upwards (decrease in supply ) or downwards (increase in supply . For deterrent example if foot-and-mouth disease led to fire of millions of cattle carcasses in europium , 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 de mand is constant 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 metamorphose 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

If you want to get a full essay, visit our page: write my paper