Principles Of Microeconomics Assignmen Essay
Draw a demand supply diagram showing a market in equilibrium. For each of the cases below, explain what follows in the market when a. There is an unfavorable change in consumer preference. B. The price of a key resource used in the production of the commodity decreases. C. Both (a) and (b) occurs at the same time. 3. Explain, using a demand-supply framework, what happens to the equilibrium price and quantity of a. French fries when price of hamburgers fall. B. Pepsi when coke price goes up. 4. The small town of middling experiences a sudden doubling of the birth rate.
After here years, the birth rate returns to normal. Use a diagram to illustrate the effect of these events on the following: a. The market for an hour of babysitting services in Middling today. B. The market for an hour of babysitting services 14 years into the future, after the birthrate returned to normal, by which time children born today are old enough to work as babysitters. C. The market for an hour of babysitting services thirty years into the future, when children born today are likely to be having children of their own. Principles Of Microeconomics Assignment By Tubful-Said