BUSI 1023: Introduction to Economics

BUSI 1023: Introduction to Economics

UniversityYorkville University (YU) Canada
SubjectBUSI 1023: Intro to Economics

QUESTION 1

Due to favorable weather conditions, the corn crop has been flourishing in the last few years. The following table presents the data:

Due to favorable weather conditions, the corn crop has been flourishing in the last few years

a. What does the table signify about the market forces of demand and supply?

b. What factors are responsible for a price change in this example?

QUESTION 2

The following Table shows XYZ’s market for avocado oil (in thousands of liters per month). Suppose that avocado oil increases in popularity and the buyers are willing to buy an additional quantity of 10 units at each price level in the table. At the same time, as a result of improved technology, oil
producers are willing to produce 30 more units at each price level.

a. Fill in the columns of the Table.

b. Calculate the new equilibrium price and quantity?

The following Table shows XYZ’s market for avocado oil

QUESTION 3

During the Christmas holiday season, the price of Christmas trees increases, and the quantity demanded trees also increases. Does it reflect the change in quantity demanded or change in demand? Support your answer with the use of a diagram. Label your diagram with appropriate variables on X-axis and Y-axis.

QUESTION 4

Identify and explain any two factors causing an increase in supply. Support your answer with the use of a diagram. Label your diagram with appropriate variables on X-axis and Y-axis. Identify and explain the factor affecting the quantity supplied.

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