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assignment #2 - a Oil prices increase What is the effect in...

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Ying Zheng 872352150 ECON1020 Professor: Mark Evers 04/12/2010 Problem #2 Demand, Supply and Elasticity 1. Draw demand and supply diagrams for each of the relevant markets to show the impact of the following changes on equilibrium prices and quantities. In each case, discuss the reason for the change in demand and/or supply, and illustrate the effect graphically. Remember to distinguish between changes in demand/ quantity demanded and supply/quantity supplied. Consider immediate short run effects only.
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Unformatted text preview: a. Oil prices increase. What is the effect in the market for alternative fuels like Ethanol? The market for corn? The market for tortillas? b. A freeze in Florida this winter has reduced the yield on strawberries by 50%. What is the effect in the US Market for strawberries? What is the effect in the Central and South American strawberry market? What is the effect in the market for strawberry smoothies at Jamba Juice on University Blvd.?...
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