Using demand and supply analysis what will be the

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the number of yoga providers. Using demand and supply analysis what will be the impact on price and quantity in the market for yoga services. 4 Marks When any non-price determinants of demand changes, the demand curve responds by shifting. An increase of demand is a rightward shift, is caused by a change in one of the non- price determinants. Demand of yoga has increase, cause a shift to the right of demand curve. When the quantity demanded exceed the quantity supplied, it will lead to shortage. Price will increase to equilibrium price. Decrease in the number of yoga providers means decrease in supply of yoga in another words. When there is a decrease in supply, it causes the supply curve to shift to the left. An increase in equilibrium price
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QUESTION 3 The outbreak of Bird Flu in 1997 resulted in the Hong Kong government ordering the culling of more than 1.5 million chickens. The culling of chickens was simultaneously accompanied by consumers reducing their demand for life chickens due to the bird flu. Using demand and supply analysis, what was the impact on price and quantity in the market for life chickens? (HINT: THERE ARE 2 SCENARIOS WORKING AT THE SAME TIME) 4 Marks If the culling of chickens was simultaneously accompanied by consumers reducing their demand for life chickens due to the bird flu, there will be decrease in quantity of demanded, After the decrease of demand, there will be surplus in the original price. The quantity demand is less than quantity supplied. More chicken are available than it is the amount that customers are willing to buy. Competition among the seller to get rid of the surplus quantity, force the price to fall. However, the supply are decreasing too. Hence, equilibrium price decreases, increases or may not change and equilibrium quantity decreases in the market for chickens. The demand shifts results in a lower price, and the supply shift leads to a higher price. There is no answer to the price will increase or decrease because the price is indeterminate.
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