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How does microeconomics affect business

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Reference no: EM131382154

Question #1 - How does microeconomics affect business? Why is it important for business people to understand the fundamentals of each?

Question # 2 - Draw supply and demand graphs that estimate what will happen to demand, supply, and the equilibrium price of coffee if these events occur:

a. Widely reported medical studies suggest that coffee

drinkers are less likely to develop certain diseases.

b. The cost of manufacturing paper cups increases.

c. The state imposes a new tax on takeout beverages.

d. The biggest coffee chain leaves the area.

Question # 3 - Describe the four different types of competition in the private enterprise system. In which type of competition would each of the following businesses be likely to engage?

a. large drug stores chain

b. small yoga studio

c. steel mill

d. large farm whose major crop is corn

e. Facebook

Reference no: EM131382154

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