What is the effect on the equilibrium price and quantity

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The response to the question MUST be typed and formatted following APA 6th edition style.

Students are expected to use economic textbooks and Journals.

1. Answer the following questions using supply and demand analysis. The use of appropriate diagrams is encouraged.

a) What is the effect on the equilibrium price and quantity traded in a market of the introduction of a new technology that reduces costs of production for all firms?

b) What is the effect on the equilibrium price and quantity traded in a market of a change in tastes that reduces the demand for the product?

c) What is the effect on the equilibrium price and quantity traded in a market of the imposition of a tax per unit sold on suppliers?

d) What is the effect on the equilibrium price and quantity traded in a market of the payment of a subsidy per unit sold paid to suppliers?

2. It is said that elasticity is the measurement of how responsive a change in the price of a product as against the change in the quantity demanded. Using this statement identify and discuss five (5) uses of elasticity's to the public sector and five (5) uses of elasticity's to the private sector.

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the concept of elasticity demand has broader application in every field of the economy the theory shows its practical application and usefulness the economic policy of the Government in allocating resources similarly, it has equally important for firms while deciding the price of the goods and output for maximisation the profit

Reference no: EM131735131

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len1735131

11/23/2017 6:06:05 AM

Five uses of elasticity on the Public Sector and five uses of elasticity on the Private Sector. Note: Maximum of seven (7) persons and minimum of five (5) persons per group. Late submission will not be accepted. The response to the question MUST be typed and formatted following APA 6th edition style. Students are expected to use economic textbooks and Journals.

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