Economics of Globalization

Running head: ECONOMICS OF GLOBALIZATION
Economics of Globalization
Name of the Student
Name of the University
Course ID

1
ECONOMICS OF GLOBALIZATION
Table of Contents
Answer 1....................................................................................................................................2
Answer 2....................................................................................................................................3
Answer 3....................................................................................................................................3
Answer 4....................................................................................................................................4
References..................................................................................................................................6

2
Price
S
D1
D2
Q*Q1
P*
P1
Quantity
ECONOMICS OF GLOBALIZATION
Answer 1
Figure 1: Decrease in demand of electricity at night
Source: (created by author)
According to the given scenario, electricity becomes cheaper at night and for this
udders need to pay comparatively less amount during this time. Economy 7 tariff charges less
during this time as the demand for electricity remains low (Cowell 2018). The above diagram
represents this situation by changing the demand curve from D1 to D2. The supply curve
remains unchanged at S. Therefore, the price of electricity decreases from P* to P1 due to this
decrease in demand.