THE ECONOMICS ASSIGNMENT

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
Name of the University
Author Note

ECONOMICS ASSIGNMENT
1
Table of Contents
Answer to question 1.......................................................................................................................2
Answer to question 2.......................................................................................................................5
Reference list...................................................................................................................................9

ECONOMICS ASSIGNMENT
2
Answer to question 1
a)
500 750 1000125015001750200022502500275030003250350037504000
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
5.5
6
6.5
Demand supplyQuantity (boxes per week)
Price (dollars per box)
Figure 1: Market demand and supply curve
Source: (as created by the author)
According to the figure 1, the equilibrium market quantity is about 2250 boxes per week
and the equilibriun market price is around $2.5 per box. At this level, the market demand equates
to the market supply. There is no shortage or surplus for the banana markt.
b)
At $1.50, te banan market will be in shortage as demand for banana is excess over the supply of
banana. In this case, the producers must increase the supply as well as the price level to meet the
equilibrium condition of the banana market (Kamyab et al. 2015).