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2. Show on a graph and explain how each of the following scenarios is likely to ...

Sep 25, 2024

2. Show on a graph and explain how each of the following scenarios is likely to affect the market demand for the product specified. A. Apples: Due to a drought, the market price of apples rises. B. Coca Cola: A major supermarket chain reduces the price of Pepsi. C. Automobiles: Petrol prices decrease and are expected to remain low for some time. D. Airline tickets: The average income in Sydney increases by 10%. E. Instant noodles: The government announces a policy that will result in a new $2,000 per year payment to university students to help cover living expenses.

To analyze how each scenario affects the market demand for the specified products, we can use the concept of demand curves and shifts in demand. Let's break down each scenario: A. Apples: Due to a drought, the market price of apples rises. - Effect on Demand: A rise in the price of apples due to a drought typically leads to a decrease in the quantity demanded, as consumers may seek substitutes or reduce their consumption. - Graph: The demand curve for apples would remain the same, but the quantity demanded would move left along the curve due to the higher price. B. Coca Cola: A major supermarket chain reduces the price of Pepsi. - Effect on Demand: Since Coca Cola and Pepsi are substitutes, a decrease in the price of Pepsi would likely lead to a decrease in the demand for Coca Cola. Consumers may switch to the cheaper alternative. - Graph: The demand curve for Coca Cola would shift to the left, indicating a decrease in demand. C. Automobiles: Petrol prices decrease and are expected to remain low for some time. - Effect on Demand: A decrease in petrol prices makes owning and operating automobiles cheaper, which can increase the demand for cars as more consumers may be inclined to purchase them. - Graph: The demand curve for automobiles would shift to the right, indicating an increase in demand. D. Airline tickets: The average income in Sydney increases by 10%. - Effect on Demand: An increase in average income generally leads to an increase in demand for normal goods, including airline tickets, as more people can afford to travel. - Graph: The demand curve for airline tickets would shift to the right, indicating an increase in demand. E. Instant noodles: The government announces a policy that will result in a new $2,000 per year payment to university students to help cover living expenses. - Effect on Demand: This additional income for students may increase their purchasing power, leading to an increase in demand for affordable food options like instant noodles. - Graph: The demand curve for instant noodles would shift to the right, indicating an increase in demand. Summary In summary, the demand for each product is influenced by various factors such as price changes of related goods, income changes, and external economic conditions. The graphs would visually represent these shifts in demand, with the x-axis typically representing quantity and the y-axis representing price. If you need help with drawing the graphs or any further explanation, feel free to ask!

I need help with drawing the graphs

To help you draw the graphs for each scenario, let's break down the demand shifts and how to represent them visually. A. Apples: Due to a drought, the market price of apples rises. - Effect on Demand: When the price of apples rises, the quantity demanded typically decreases. This can be represented by a leftward shift of the demand curve. Graph: 1. Draw the initial demand curve (D1) and label it. 2. Draw a new demand curve (D2) to the left of D1 to show the decrease in demand. B. Coca Cola: A major supermarket chain reduces the price of Pepsi. - Effect on Demand: Since Pepsi is a substitute for Coca Cola, a decrease in the price of Pepsi will likely decrease the demand for Coca Cola. Graph: 1. Start with the initial demand curve for Coca Cola (D1). 2. Shift the demand curve to the left (D2) to indicate a decrease in demand. C. Automobiles: Petrol prices decrease and are expected to remain low for some time. - Effect on Demand: Lower petrol prices make owning and using automobiles cheaper, which can increase the demand for automobiles. Graph: 1. Draw the initial demand curve for automobiles (D1). 2. Shift the demand curve to the right (D2) to show an increase in demand. D. Airline tickets: The average income in Sydney increases by 10%. - Effect on Demand: An increase in income generally leads to an increase in demand for normal goods, including airline tickets. Graph: 1. Start with the initial demand curve for airline tickets (D1). 2. Shift the demand curve to the right (D2) to indicate an increase in demand. E. Instant noodles: The government announces a policy that will result in a new $2,000 per year payment to university students. - Effect on Demand: This additional income can increase the demand for instant noodles, especially among students. Graph: 1. Draw the initial demand curve for instant noodles (D1). 2. Shift the demand curve to the right (D2) to show an increase in demand. Summary of Graphs For each scenario, you will have two curves: the original demand curve and the new demand curve after the shift. Label the axes with "Price" on the vertical axis and "Quantity" on the horizontal axis. If you need further assistance with the graphs or any specific details, feel free to ask!

Can you just draw these for me?

Sure! Let's go through each scenario and describe how to draw the graphs for them. A. Apples: Due to a drought, the market price of apples rises. 1. Graph: Draw a standard demand curve (downward sloping) and label it as D1. 2. Shift: Since the price of apples rises, the quantity demanded decreases, which can be represented by a leftward shift of the demand curve to D2. 3. Axes: Label the vertical axis as "Price" and the horizontal axis as "Quantity." Mark the initial equilibrium point where D1 intersects the supply curve and the new equilibrium point with D2. B. Coca Cola: A major supermarket chain reduces the price of Pepsi. 1. Graph: Start with the demand curve for Coca Cola (D1). 2. Shift: The decrease in the price of a substitute (Pepsi) will likely decrease the demand for Coca Cola, shifting the demand curve left to D2. 3. Axes: Label the axes as before and mark the equilibrium points. C. Automobiles: Petrol prices decrease and are expected to remain low for some time. 1. Graph: Begin with the demand curve for automobiles (D1). 2. Shift: A decrease in petrol prices makes owning a car more attractive, increasing demand. Shift the demand curve right to D2. 3. Axes: Label the axes and mark the equilibrium points. D. Airline tickets: The average income in Sydney increases by 10%. 1. Graph: Start with the demand curve for airline tickets (D1). 2. Shift: An increase in income typically increases demand for normal goods, shifting the demand curve right to D2. 3. Axes: Label the axes and mark the equilibrium points. E. Instant noodles: The government announces a policy that will result in a new $2,000 per year payment to university students. 1. Graph: Begin with the demand curve for instant noodles (D1). 2. Shift: The additional income for students is likely to increase demand for instant noodles, shifting the demand curve right to D2. 3. Axes: Label the axes and mark the equilibrium points. If you need any specific details or further assistance with the graphs, just let me know!