1.1For each of the following independent scenarios, use the demand-supply model to motivate your answer.

1.1.1As the owner/manager of a company, one has to be aware of the effects of external circumstances on the demand and supply of the good or service that ones company produces and sells. Assume your company produces and sells intermediate food items to the producers of the final good.

In terms of the above statement, appraise the economic impact that a challenging social factor such as the increasing awareness of the importance of organic food in one's diet will have on the intermediate food item produced by your company.

1.1.2Assess how a factor such as technology affects the equilibrium price and quantity of the good or service produced by a company.