Question
In connection to the Supply and Demand, do the following analysis 3A: Increase in Demand & Increase in Supply 3B: Decrease in Demand & Decrease
In connection to the Supply and Demand, do the following analysis
3A: Increase in Demand & Increase in Supply
3B: Decrease in Demand & Decrease in Supply
3C Decrease in Demand & Increase in Supply
3D Increase in Demand & Decrease in Supply
In each case, i.e., 3A, 3B, 3C, and 3D, -- Introduce market for a good (ex: market for shampoo, for mobile phone, for hair cutting service, for surgical masks and so on). Be creative. Give a demand shifter and a supply shifter that could cause the demand and supply curves to shift according to the case you are discussing. -- draw diagrams to cover all possibilities. -- Summarize the effect on equilibrium price (P) and on equilibrium quantity (Q)
Note: In 3A, 3B, 3C, and 3D,
1) 3B, 3C, 3D must be markets for different goods, i.e., avoid using the market for apple for all 3A, 3B, 3C, 3D.
2) Use different demand shifters and supply shifters in 3A, 3B, 3C, 3D. (We have 7 demand shifters, which are 1)Shifters in buyers' income, 2)Shifters in weather, 3)Shifters in price of a related good, 4)Shifters in number of buyers, 5)Shifters in price expectation, 6)Shifters in income expectation, and 7)Shifters in buyers' tastes/preferences. And 4 supply shifters, which are 1)Shifters in input prices, 2)Shifters in weather, 3)Shifters in number of sellers, and 4)Shifters in price expectation by sellers)
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