Assignment 1: Determinants of Supply and Demand Describe and analyze the principles of economics...

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Assignment 1: Determinants of Supply and Demand

Describe and analyze the principles of economics that apply to the functions of individual decision makers, both consumers and producers within the larger economic system (CO1)

Identify the nature and functions of product markets (CO2)

Describe the role of government in promoting greater efficiency and equity in the economy (CO5)

Describe the importance of economic analysis in real world situations. (CO6)

Assignment 2: Costs and Revenues Structures

Describe and analyze the principles of economics that apply to the functions of individual decision makers, both consumers and producers within the larger economic system (CO1)

Identify the nature and functions of product markets (CO2)

Describe the nature and functions of factor markets (CO3)

Apply graphs and tables to illustrate cost and revenue of firms in different market structures (CO4)

Describe the importance of economic analysis in real world situations. (CO6)

Robert · Accepted Answer

1 
 
Select any one of your favorite products, for instance, food that you like, a car, or a gadget that 
you use. The product should be a private, and not a public, good. 
Then, do the following: 
1. Analyze five reasons why demand for this product could shift. 
Answer – The demand for Honda Brio Car can shift due to following reasons – 
 i. When there will be change in the price of the complementary good, that is, petrol. It will lead 
to changes in the demand of the car as well. 
ii. When there will be change in the price of the competitor’s demand of the car, there will be 
effect over the demand of Brio. 
iii. Rise in taxes over cars lead to reduction in demand of cars. 
iv. Rise in interest rates over car loans will reduce the demand for car in the market. 
v. Imposition of charges over parking in front of home will reduce the demand of the car as 
people will face problems related to car parking.
2. Analyze five reasons why supply for this product could shift.  
Answer – The supply of cars will be affected by the following reasons – 
i. Rise in price of the inputs used in car making such as steel and iron will increase the price of 
the car because change in demand of input prices will change the demand of output produced 
because it is a derived demand. 
ii.

Assignment 1: Determinants of Supply and Demand Describe and analyze the principles of economics that apply to the functions of individual decision makers, both consumers and producers within the...

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