Question 1. Illustrate each of the following events using a demand and supply diagram for bananas (use a separate graph for each part). You should show the initial equilibrium, then clearly indicate which curve you shift in which direction and why. Explain why you shifted the curve(s) you did. a) Reports surface that the fruit is infected with a deadly virus b) Consumers income drops c) The price of bananas falls d) The price of oranges falls e) Consumers expect the price of bananas to fall sometime in the future Don't forget to label everything, specially when you are drawing graphs. Label every axis, demand, supply, equilibrium price, equilibrium quantity, etc.
Question 1. Illustrate each of the following events using a demand and supply diagram for bananas (use a separate graph for each part). You should show the initial equilibrium, then clearly indicate which curve you shift in which direction and why. Explain why you shifted the curve(s) you did. a) Reports surface that the fruit is infected with a deadly virus b) Consumers income drops c) The price of bananas falls d) The price of oranges falls e) Consumers expect the price of bananas to fall sometime in the future Don't forget to label everything, specially when you are drawing graphs. Label every axis, demand, supply, equilibrium price, equilibrium quantity, etc.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 1. Illustrate each of the following events using a demand and supply diagram for bananas (use a separate graph for each part). You should show the initial equilibrium, then clearly indicate which curve you shift in which direction and why.
Explain why you shifted the curve(s) you did.
a) Reports surface that the fruit is infected with a deadly virus
b) Consumers income drops
c) Theprice of bananas falls
d) The price of oranges falls
e) Consumers expect the price of bananas to fall sometime in the future
a) Reports surface that the fruit is infected with a deadly virus
b) Consumers income drops
c) The
d) The price of oranges falls
e) Consumers expect the price of bananas to fall sometime in the future
Don't forget to label everything, specially when you are drawing graphs. Label every axis, demand, supply, equilibrium price , equilibrium quantity , etc.
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