Economics for BusinessPlease complete written answers to the following questions. (Any plagiarism...

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Economics for BusinessPlease complete written answers to the following questions. (Any plagiarism found will be highly penalised) 	Consider three markets. These markets are for oranges, oranges juice and mineral water. In this question these markets are related as follows. Oranges are an input for orange juice production. Orange juice and mineral water are substitutes. In this question these markets are not related in any way other than is stated above. Suppose that an increase in input costs makes mineral water more costly to produce.  RequiredTo answer this question, draw three demand and supply diagrams (as specified below). For each diagram you must label which market it refers to, show clearly how the demand or supply curve shifts, and clearly show how the equilibrium price changes. For each diagram you must provide a written explanation. 	First, draw a diagram showing what happens in the mineral water market 2 marks).     	Then, draw another diagram showing what happens in the orange juice market (4 marks). 	Then, draw another diagram showing what happens in the orange market (4 marks).   	Look at Figure 5.5  Required   	Calculate total revenue when price equals $5 and when price equals $6. Illustrate this with a carefully-drawn diagram with the revenue associated with a price of $5 shaded-in. 	Using the concept of elasticity provide a brief explanation, in your own words, as to what happens to revenue. 	Then calculate total revenue when price equals $2 and when price equals $3. Illustrate this with another carefully-drawn diagram with the revenue associated with a price of $2 shaded-in. 	Using the concept of elasticity provide a brief explanation, in your own words, as to what happens to revenue.

Robert · Accepted Answer

1 
 
Economics for Business
Please complete written answers to the following questions. (Any plagiarism found will 
be highly penalised)
1. Consider three markets. These markets are for oranges, oranges juice and mineral 
water. In this question these markets are related as follows. Oranges are an input for 
orange juice production. Orange juice and mineral water are substitutes. In this 
question these markets are not related in any way other than is stated above. Suppose 
that an increase in input costs makes mineral water more costly to produce.  
Required 
To answer this question, draw three demand and supply diagrams (as specified 
below). For each diagram you must label which market it refers to, show clearly how 
the demand or supply curve shifts, and clearly show how the equilibrium price 
changes. For each diagram you must provide a written explanation.
(a) First, draw a diagram showing what happens in the mineral water market 2 marks). 
Answer – As the input costs of making mineral water rises, there will be fall down in the 
quantity supplied. At each price level, there will be less supply of mineral water as it has 
become expensive to produce same unit of mineral water. Therefore, there is backward shift 
of the supply curve towards left to show fall in supply level and rise in equilibrium price. 
2 

(b) Then, draw another diagram showing what happens in the orange juice market (4 
marks). 
Answer – Due to the rise in the input cost of mineral water,

Economics for Business Please complete written answers to the following questions. (Any plagiarism found will be highly penalised) Consider three markets. These markets are for oranges, oranges juice...

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