Answer the following questions: 1. Using the concepts of demand and supply, explain and illustrate...

Question

Answer the following questions: 1. Using the concepts of demand and supply, explain and illustrate what is happening in the olive oil market. In your answer you need to clearly explain the equilibrating process and the impact on price and quantity. [6 marks] 2. Explain how this rise in price of olive oil will affect the demand of a related market? [5 marks] Your assignment will also be assessed on how effective you can communicate with the reader, i.e. how well you have presented your arguments and ensured your analysis is logical and consistent. Consequently, 1 mark will be awarded for effective writing including proper grammar, referencing and formatting. Importantly, make sure you use appropriate diagrams in your analysis.

Robert · Accepted Answer

1 
 
Answer the following questions:  
1. Using the concepts of demand and supply, explain and illustrate what is happening in the olive 
oil market. In your answer you need to clearly explain the equilibrating process and the impact 
on price and quantity. [6 marks]  
Answer – According to the article, there have been few major changes happening in the olive oil 
market that has been majorly impacting the equilibrium price as well as equilibrium quantity of 
olive oil. First of all, there has been rise in the demand of olive oil in the market because of its 
healthy nutrients which makes its demand in the market less elastic. Even if chefs in Italy and 
London are ready to pay higher prices to purchase Olive oil which makes it to be an essential 
item in the ingredients of their food preparation. The rise in cost of food preparation is 
transferred to the customers in the form of higher food prices, thus raising the prices in the food 
of the restaurants. Hence,

Answer the following questions: 1. Using the concepts of demand and supply, explain and illustrate what is happening in the olive oil market. In your answer you need to clearly explain the...

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