Assignment 01.09

Assignment 01.09 - Assignment 01.09 Equilibrium: Demand and...

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Assignment 01.09 Equilibrium: Demand and Supply 1a. Shifting Curve: Supply Direction of Shift: Left due to decrease in supply, farmers will sell less. Equilibrium Price: Rise because of shortage. Equilibrium Quantity: Will fall because of reduced demand. Determinant Causing the Shift: Resources. The drought reduces the amount of water and feed ( plants and grains) for the cattle. The farmer must use his resources wisely, so he must reduce his amount of cattle. b. Shifting Curve: Demand Direction of Shift: Right because people want chocolate for health benefits. Equilibrium Price: Will rise because of shortage and sudden demand. Equilibrium Quantity: Rise because of high demand or possibly fall due to rising prices. Determinant Causing the Shift:
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Assignment 01.09 - Assignment 01.09 Equilibrium: Demand and...

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