logo

BUS114 Assignment on Introduction to Economics

10 Pages1133 Words278 Views
   

Added on  2020-04-07

BUS114 Assignment on Introduction to Economics

   Added on 2020-04-07

ShareRelated Documents
Subject Code: BUS114 Subject Name: Introduction to EconomicsStudent Name:
BUS114 Assignment on Introduction to Economics_1
PART AQ1a.PQ demandedQ supplied200100025001801200220016014001900140160016001201800130010020001000b.Now we have a new quantity demanded at each price level. We keep price same but demand is 500 + old quantity demanded. So at a price of $200 we had demand for 1000 units, which is now raised to 1500. The new Q dd = 500+Q demanded at each price point. The new equilibrium is now shown in blue color in the table below. Equilibrium quantity = 1900 and ebq price is $160. Thus both price and quantity have risen due to new demand. PQ demandedQ suppliednew Q ddEquilibrium pointEquilibrium quantity= 1600Equilibrium price=140
BUS114 Assignment on Introduction to Economics_2
200100025001500180120022001700160140019001900140160016002100120180013002300100200010002500Q2The market for bananas is shown as a downward sloping demand curve D1 while the supply curve S1 is upward sloping. Equilibrium is at E1 where demand equals supply ebq price is P1 an ebq quantity is Q1. We now trace the effects of the two events- a rise in income levels and more banana suppliers. Income increase affects the demand side of the market. There is an expansion in demand sothat demand curve shifts to right from D1 to D2. On its own this causes a shortage at old priceP1 so that we more sellers are willing to sell now.
BUS114 Assignment on Introduction to Economics_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Introduction to Economics Assignment
|11
|1412
|319

Assignment on Demand and Supply Economics
|13
|2126
|104

Economics - Market for banana
|12
|1538
|18

Demand and Supply Equilibrium: Assignment
|6
|1355
|296

(Solved) Economic Principles- Assignment
|15
|1489
|198

Change in Demand - Economics Assignment
|8
|1220
|108