Module 3 – Demand and Supply
1. “Why Avocado Prices Have Hit All-Time High.” by Helena Horton, The Telegraph, 1 May 2017, http:
www.telegraph.co.uk/news/2017/05/01/avocado-prices-have-hit-all-time-high
1) Ceteris paribus, the drought in California _____________________ (increased/decreased) ______________________ (demand/supply) for avocados. The equili
ium price of avocados will _____________________ (increase/decrease) and equili
ium quantity of avocados will _____________________ (increase/decrease).
2) Ceteris paribus, the trend in which avocados are lauded as healthy food _____________________ (increased/decreased) ______________________ (demand/supply) for avocados. The equili
ium price of avocados will _____________________ (increase/decrease) and equili
ium quantity of avocados will _____________________ (increase/decrease).
Graph:
1) XXXXXXXXXX2)
2. “COVID-19 Affecting food prices, grocery shopping behaviour.” by Jonathan Muma, News1130, 26 August 2020, https:
www.citynews1130.com/2020/08/26/covid-19-affecting-food-prices-grocery-shopping-behaviou
. According to the article, what has caused the change in the price of grocery? Please show your answers graphically.
Graph: Explanation:
3. “Betting on Ethanol, Brazilian Mills Turn Sour on Sugar.” by Ana Ionova and Marcelo Teixeira Reuters, 3 December 2018, https:
www.reuters.com/article/us-
azil-ethanol-insight
etting-on-ethanol-
azilian-mills-turn-sour-on-sugar-idUSKBN1O20L7 According to the article, what has caused the change in the price of ethanol? Please show your answers graphically.
Graph: Explanation:
4. Graph the following demand and supply curves and find the market equili
ium quantity and price.
P = 24 - 3QD , P = 5QS + 4. If a price ceiling of $10 is imposed, how much will the shortage or surplus be? (Round your answer to one decimal place.)