With the aid of a diagram, show the effect of the following changes on the equilibrium price, quantity and equilibrium point. Market for tomatoes: Massive flood has destroyed 50% of the tomatoes on the tomato field. Market for coca cola: Price of coca cola has gone up. Market for bread: Consumer’s income has increased and cost of production has increased.
With the aid of a diagram, show the effect of the following changes on the equilibrium price, quantity and equilibrium point. Market for tomatoes: Massive flood has destroyed 50% of the tomatoes on the tomato field. Market for coca cola: Price of coca cola has gone up. Market for bread: Consumer’s income has increased and cost of production has increased.
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 7SQP
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QUESTION TWO
With the aid of a diagram, show the effect of the following changes on the
- Market for tomatoes: Massive flood has destroyed 50% of the tomatoes on the tomato field.
- Market for coca cola: Price of coca cola has gone up.
- Market for bread: Consumer’s income has increased and cost of production has increased.
- Market for housing: increase in the number of marriages and increase in the price of construction materials.
- Market for beer: Government imposes a sales tax on beer.
- Market for maize: Increase in the number of maize farmers and increase in consumer taste for maize.
- Market for Samsung phone: People switch to Huawei.
- Market for Education: Increase in the price of school fees.
Money Market : Increase in the lending rate.- Market for DIAPERS: Increase in the number of pregnant women.
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