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Answer the following problems.

problem1) Draw typically shaped supply and demand curves for hot dogs and indicate equilibrium price and quantity. Use graph to show what would happen to equilibrium price and quantity of hot dogs if there is an increase in income in the economy and describe.

problem2) Assume that profitability of growing corn to produce ethanol rises sharply. Use supply and demand to show the impact of this on the market for wheat.

Label your diagram clearly and describe.

problem3) Assume that both consumers and producers expect prices of plywood to be much higher in three months. Use supply and demand to show the impact of this on the present market for plywood. Label your diagram clearly and describe.

problem4) Use a diagram to describe how and why rent control introduced by government results in a shortage of rented accommodation. In your answer you also need to refer to the consequences of rent control.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M93090

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