answer

Demandandsupply.revised x

Running Head: DEMAND AND SUPPLY 1

DEMAND AND SUPPLY 3

Supply and demand

Student’s name

Institutional affiliation

Answers from the word document

Question 1

A decrease in the supply of the drink is indicated by graph 01. A drop in the household average from $ fifty-six to $ fifty-two k is indicated by graph 04. Improvement for bottled water in the bottling technology is indicated in graph 03, and an increase in the prices of electrolytes for bottled water is indicated by graph 02.

Question 2

The equilibrium is thirty-three million lbs, while the equilibrium price is $4 per lb.

If the price increases up to $6 per lb, there will be a surplus. The reason is that the company will be will to produce more quantity since the price is high, thus more profit. Twenty-two lbs are the surplus quantity.

Question 3

When the price of Christmas trees increases, there is also an increase in quantity demanded during the Christmas period. This is the violation of the law of demand since the law requires a product to decrease in demand as others’ prices increase while other factors remain constant.

Question 4

What is happening is that although the demand is increasing, the supply of plums is increasing more.

Answers from the pdf document

Question 1

If ford uses all its resources, it will produce twenty thousand trucks every day. If Fold is constructing three thousand cars every day, building an extra a thousand cars will build two thousand lesser trucks per day. Building three thousand cars per day, four thousand trucks per day is technically inefficient.

Question 2

(a) If the country produces a combination of products that effectively utilizes the economy’s resources, it means the country is operating on its production possibility frontier.

(b) The opportunity cost between points to B to C is twenty sedans.

Question 3

$400 earned by carter for selling men’s designer shoes at the Brothers is indicated by K and G.