Summer18 Econ1 Sec 2220 Homework Assignment2 Student name p

Summer-18 Econ-1 Sec. #2220 ??? Homework Assignment-2 Student name (print): Hint for questions 1 and 2: to show move of the whole curve use letters (for ex. A to C) rather than numbers (5 to 6). $160 $140 $120 $100 $80 1: Refer to the diagram with three demand curves: A, B and C Every day 15 cases of wine are being sold on the market at $150 each. An increase in the quantity demanded would be shown as change from (name point or line as appropriate): to (name point or line as appropriate) Name a reason for this change: 8S1 2: Refer to the same diagram. Every day 25 cases of wine are 2 being sold in a town at $50 each. An increase in demand would be illustrated by change from (name point or line as appropriate): $20 to (name point or line as appropriate): 0 10 20 0Name one of the possible reasons for this change: 30 Quantity The total demand for and the total supply of wheat per month at the Chicago\'s wheat wholesale market are shown in the table below. Chicago\'s Price Wheat Wheat Bushels Demanded 14,000 16,000 18,000 20,000 22,000 Bushels Supplied Per Bushel $69.00 $66.00 $63.00 $60.00 $57.00 23,000 22,000 21,000 20,000 19,000

Solution

Q 1

An increase in the quantity demanded refers to a movement along the demand curve. It means when the price decreases quantity increases. The movement is along points 5 to 1.

A to C.

An increase in the quantity demanded will shift the demand curve outwards, shifting from line A to C. Shifting of the demand curve is due to change in the determinants of demand like tastes and preferences, consumer income, population etc. Please remember that price will remain the same.