Offer and Demand

1. Read each of the following economic situations carefully and work on them separately:

a.) A health problem associated with a coronavirus has been unleashed in your country. As a result of the situation, the number of consumers who want to purchase hand sanitizer has increased this season. b.) After a recent atmospheric phenomenon, a large amount of the fruit harvest was destroyed simultaneously with the arrival of the high season of gastronomic events. c.) The costs associated with the consumption of electrical energy in the production process have been reduced considerably, together with the entry into the market of 10 new companies dedicated to food production.

2.) For each situation, prepare a graph where you represent the intersection of the demand and supply curves to establish the equilibrium point, the price, and the quantity of the initial equilibrium.

3.) Analyze each situation and identify the curves that you must move to find the equilibrium point, the price, and the quantity of the final equilibrium when compared to the initial equilibrium.

4.) After making and analyzing the graphs, you should evaluate each situation in terms of: The effect on demand (increases or decreases) The effect on supply (increases or decreases) The effect on the equilibrium price and quantity (increases or decreases)

Reference:

McEachern, W. (2019). Econ micro (6.^a ed.). Cengage Learning