Economics Assignment - Desklib

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the student
Name of the university
Author Note

1ECONOMICS ASSIGNMENT
Table of Contents
1..................................................................................................................................................3
a..............................................................................................................................................3
b..............................................................................................................................................3
c..............................................................................................................................................4
d..............................................................................................................................................5
2..................................................................................................................................................7
a..............................................................................................................................................7
b..............................................................................................................................................8
c..............................................................................................................................................9
3)..............................................................................................................................................10
References:...............................................................................................................................11

2ECONOMICS ASSIGNMENT
Price
Supply of ice cream
O
S0
S1
1.
a.
Due to increasing number of ice-cream producers, market supply increases and
consequently this curve shifts to the right.
Figure 1: Increase in supply
Source: (created by author)
The supply curve of ice cream has shifted from S0 to S1 to represent increase in supply.
b.
As the price of frozen yoghurt decreases, demand for ice cream can decrease as well.
This is because yoghurt and ice cream are substitute and for this demand curve can shift to
the left.