Three shifts of supply and demand are shown. Your task is to match them with the events listed in the texts. **Economic Events and Their Impact on Markets**a. **1997 Florida Freeze Impact on Vegetables Market** - A severe freeze in 1997 resulted in over $300 million worth of damage to Florida crops. - The prices of some vegetables surged by 25% just a week after the freeze event. - Example: Squash, which was priced at $1.16 per pound on January 17, rose to $1.40 per pound by January 24.b. **Impact of Burkha Law Change in Afghanistan, 2001** - In 2001, following the ousting of the Taliban from Afghanistan, a law mandating women to completely cover themselves in public with a burkha was removed. - This change led many women to stop wearing burkhas, creating a surplus for sellers. - Consequently, the price of burkhas dropped by 20% in just a few days.c. **Price Dynamics in the Coffee Market (1997-2002)** - Entry of new coffee growers, advanced growing techniques, and favorable growing conditions led to a significant drop in the price of raw coffee beans. - Prices fell from approximately $2.00 per pound in 1997 to less than $0.05 per pound by 2002. - To cope with increased supply, some growers suggested a marketing campaign to enhance demand.**Graphs and Diagram Explanation**1. **First Graph: Vegetables Market** - Depicts a rightward shift in the supply curve (S) suggesting an increase in supply. - The demand curve (D0 to D1) remains unchanged. - The intersection of supply and demand moves, highlighting an increase in quantity (from Q0 to Q1) and price surge.2. **Second Graph: Burkhas Market** - Shows a rightward shift in the demand curve (D0 to D1), indicating decreased demand. - The supply curve (S) remains unchanged. - The new equilibrium shows a reduction in price and quantity (from Q0 to Q1).3. **Third Graph: Coffee Market** - Illustrates a rightward shift in the supply curve (S0 to S1), reflecting increased supply. - Demonstrates a supply surplus and the need for demand stimulation (marketing efforts). - The intersection shift shows the price decline due to surplus supply conditions.

The given graphs are showing the market equilibrium of goods . And price of good is determined by…

A 1997 freeze caused more than $300 million in damage to Florida crops. Prices of some vegetables rose by 25% just one week after the freeze. Squash, for example, which had cost $1.16/pound on January 17, cost $1.40/pound on January 24. Market: Vegetables b. In 2001, when Taliban were ousted from Afghanistan, a law required women to completely cover their bodies in public with a wrap-around garment called a burkha was eliminated. Many women stopped wearing burkhas and sellers found they had more burkhas than they could sell. Within days, the price of burkhas fell 20%. c. Due to the entry of new coffee-growers (such as Vietnam) in the market, improved growing techniques, and favorable growing weather, the price of raw coffee beans fell from about $2.00 a pound in 1997 to less than $0.05 a pound in 2002. Some growers have proposed a marketing campaign to boost demand to match the increasing supply. Q1 I D₁ QO S Do Q100 S₁ D₁ So T QO $₁ t So Do Q1 D₁

A 1997 freeze caused more than $300 million in damage to Florida crops. Prices of some vegetables rose by 25% just one week after the freeze. Squash, for example, which had cost $1.16/pound on January 17, cost $1.40/pound on January 24. Market: Vegetables b. In 2001, when Taliban were ousted from Afghanistan, a law required women to completely cover their bodies in public with a wrap-around garment called a burkha was eliminated. Many women stopped wearing burkhas and sellers found they had more burkhas than they could sell. Within days, the price of burkhas fell 20%. c. Due to the entry of new coffee-growers (such as Vietnam) in the market, improved growing techniques, and favorable growing weather, the price of raw coffee beans fell from about $2.00 a pound in 1997 to less than $0.05 a pound in 2002. Some growers have proposed a marketing campaign to boost demand to match the increasing supply. Q1 I D₁ QO S Do Q100 S₁ D₁ So T QO $₁ t So Do Q1 D₁

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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