Indicate the impact if any on demand, supply, price and quantity. (a) In academic year 2020/2021 a university mandates that all students must take Financial Accounting as a core requirement for their major. Concurrently, the university bookshop made their order for Financial Accounting textbooks based on the number of registered students in the last academic year. (b) The prices of inputs for the production of BrandX handbags have increased. Concurrently tast and preferences has favoured this brand of handbag in the last 4 market periods. (c) In the market for airline tickets, airline carriers cut fares for international air travel resulting in a 3% increase in ticket sales. Meanwhile, recent health considerations due to C-19 have caused an 11% reduction in the demand for international travel. (d) Electricity is a major input into the production of aluminum and aluminum is a substitute in the supply of steel. In the market for steel, the effect of an increase in price of electricity. Using the statements above: (1) What is the impact on supply? (2) What is the impact on demand? (3) What is the impact on quantity?
Carefully explain what is happening in the following markets. Indicate the impact if any on demand, supply,
(a) In academic year 2020/2021 a university mandates that all students must take Financial Accounting as a core requirement for their major. Concurrently, the university bookshop made their order for Financial Accounting textbooks based on the number of registered students in the last academic year.
(b) The prices of inputs for the production of BrandX handbags have increased. Concurrently tast and preferences has favoured this brand of handbag in the last 4 market periods.
(c) In the market for airline tickets, airline carriers cut fares for international air travel resulting in a 3% increase in ticket sales. Meanwhile, recent health considerations due to C-19 have caused an 11% reduction in the demand for international travel.
(d) Electricity is a major input into the production of aluminum and aluminum is a substitute in the supply of steel. In the market for steel, the effect of an increase in price of electricity.
Using the statements above:
(1) What is the impact on supply?
(2) What is the impact on demand?
(3) What is the impact on quantity?
(4) What is the impact on price?
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