ASSESSMENT 2 – PART 1 – DEMAND, SUPPLY AND EQUILIBRIUM
(1 + 1 + 1 = 3 marks)
Demand Schedule for High Quality Organic Bread (per week) | Supply Schedule for High Quality Organic Bread (per week) | ||
Price (in $) | Qd | Price (in $) | Qs |
4.00 | 0 | 4.00 | 80 |
3.50 | 10 | 3.50 | 70 |
3.00 | 20 | 3.00 | 60 |
2.50 | 30 | 2.50 | 50 |
2.00 | 40 | 2.00 | 40 |
1.50 | 50 | 1.50 | 30 |
1.00 | 60 | 0.50 | 20 |
(a) The market is currently not in equilibrium. The market price is $1.50.
(0.5 + 0.5 = 1 mark)
(0.5 + 0.5 = 1 mark)
(0.5 + 0.5 = 1 mark)
(2 marks)
Ms Brioche sells Artisan Sourdough at the local shop along side a value bread called Noxious White which sells for $0.50. Ms Brioche notices that, when the price of Noxious White increases from $0.50 to $0.75, demand for her bread increases. What types of goods are these two breads given this information? Explain
(2 marks)
Customers at the shop are all employed by the local factory and have all received pay rises. Demand for Ms Brioche’s Artisan Sourdough has increased while Demand for the Noxious White decreased. What types of goods are these two breads given this information? Explain
(2 marks)
(1+1+1+2+2+2 =9 marks)
In 2020 in Carland, a serious fungal disease is killing the rubber trees. For each of your answers below, identify the condition/s (determinant/s) of demand and/or supply and the impact on the equilibrium price and equilibrium quantity of the product in the stated market.
SUBMITTING A DEMAND AND SUPPLY DIAGRAM IS NOT NECESSARY.
(1,5 marks)
(1.5 marks)
(2 marks)
(3 marks)
(1.5 + 1.5 + 2 + 3 = 8 marks)
(3 + 9 + 8 = 20 marks)
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