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Economics For Business : Assignment Sample

   

Added on  2020-03-02

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NAME 1CourseNameInstitution AffiliationDue Date
Economics For Business : Assignment Sample_1

NAME 2 Question 1 [1.5 mark for each sub section; Total 15 marks]Explain and draw a graph for each of the following effects on the market equilibrium for pizzas:a.Increase in your income by 0.4%D2D1The increase in income may lead to an increase in the consumption of pizzas which leads to an increase in the demand curve, the equilibrium price increases as well as the equilibrium quantity.b.Decrease in pizza prices by 6%D2D1Decrease in pizza prices leads to an increase in the quantity demanded for pizza that shifts the demand curve outwards. This leads to an increase in the equilibrium price as well as the equilibrium quantityc.Increase in prices of hamburgers (related product) to pizzas by 6.1%
Economics For Business : Assignment Sample_2

NAME 3D2D1Hamburgers are substitutes to Pizzas, increase in price of hamburgers will lead to an increase in the demand for Pizzas. This will shift the demand curve outward leading to an increase in the market equilibrium and an increase in the equilibrium quantityd.Increase in prices of flours by 13.99%S2S1Increase in the price of flours may affect the factor prices during production and therefore the supply may decrease in response to the increase in factor prices. The supply curve shifts outwards which leads to an increase in equilibrium price while the equilibrium quantity decreases.e.Increase in petrol prices by 78%S2S1
Economics For Business : Assignment Sample_3

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