Economics - Assignment Sample PDF

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Running head: ECONOMICS ASSIGNMENT
Economics assignment
Name of the student
Name of the university
Author note
1
ECONOMICS ASSIGNMENT
Table of Contents
Section A....................................................................................................................................2
Answer 1 a)............................................................................................................................2
....................................................................................................................................................2
Answer 1b).............................................................................................................................4
Answer 1c).............................................................................................................................5
Answer 1d).............................................................................................................................8
Answer 2)...............................................................................................................................9
Answer 3).............................................................................................................................11
Answer 4).............................................................................................................................12
Answer 5).............................................................................................................................15
Section B..................................................................................................................................18
Answer 1).............................................................................................................................18
Answer 2).............................................................................................................................21
Reference list............................................................................................................................24
price
quantity
S
DD1
2
ECONOMICS ASSIGNMENT
Section A
Answer 1 a)
Case 1
Figure1Decrease in supply
When the salaries of journalists go up, there is a leftward shift in the supply curve. As
journalist acts as an input in the production of the newspapers. When there is an increase in
the salaries of the journalists, the publishers of the newspapers will reduce the quantity of
newspaper supplied at any given amount of price(Ogloblin, Brown and Levernier 2018). As
the salaries of the journalists had to increase, the publishers will reduce the supply of
newspapers since they have to pay more to the journalists. This results in shifting of the
supply curve from SS to S1S1. The supply curve shifts to left which means the supply of the
newspaper decreases.
price
quantity
D1
S
D
3
ECONOMICS ASSIGNMENT
Case 2
Figure2Increase in demand
When there is any kind big news event in the town which will be reported in the
newspaper, the demand of newspaper will increase(Cowen and Tabarrok 2015). People of
that town will demand more of the newspapers as a result of the big news. The people of that
particular town will be buying more newspapers because of that news. As a result of the big
news in the newspaper, the sales of the paper will go up resulting in increase in the demand
of the newspaper
Answer 1b)
Case1
Price
quantity
SD2
D2
D1
4
ECONOMICS ASSIGNMENT
Figure3Increase in demand
When the Rams win the Super Bowl competition, the fans of the St. Louis will
demand more of the cotton T-shirts of the St. Louis(Bas, Mayer and Thoenig 2017). The
increase in demand will lead to an increase in the rightward shift of the demand curve from
DD to D1D1. As they will win the competition the fans will demand for more shirts of the
winning team. The rightward shift of the demand curve suggests that the demand for cotton
shirts have increased. This results to a rise in equilibrium as a result of rise in demand.
Case2
Price
quantity
D2
D1
5
ECONOMICS ASSIGNMENT
Figure4Decrease in supply
Cotton is the input of the T-shirt of St. Louis Ram’s(Friedman 2017). The rise in
price of the cotton will cause the manufacturers of the T shirts to reduce the quantity supplied
at any given price. This will make the supply curve move left from SS to S1S1. As a result of
rise in the price
Answer 1c)
Case 1
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