Economic Essay on Demand and Supply

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During this year’s exceptionally hot summer ice cream manufacturers started using a new, cheaper method of ice cream production. Assume the market is initially in equilibrium. Given this, answer the following questions:

1. Show on a diagram the initial market equilibrium for ice cream 2. Show the effect of a hot summer on ice cream demand
3. Show the effect of the use of a cheaper ice cream manufacturing method on the ice cream supply. 4. What are the resulting changes in equilibrium price and the quantity traded? You will be assessed against the following criteria:

The accuracy of your answers
The appropriate use of graphs and diagrams to address the problem
The structure and clarity of the essay
The thoroughness of your answers
Your written communication skills

Theory to be included in the assignment:
1. Scarcity
2. Opportunity cost
3. Demand/Supply and Equilibrium
4. Elasticity of demand/supply
5. Consumer behavior
6. Market structures

During this year’s exceptionally hot summer ice cream manufacturers started using a new, cheaper method of ice cream production. Assume the market is initially in equilibrium. Given this, answer the following questions:

5. Show on a diagram the initial market equilibrium for ice cream 6. Show the effect of a hot summer on ice cream demand
7. Show the effect of the use of a cheaper ice cream manufacturing method on the ice cream supply. 8. What are the resulting changes in equilibrium price and the quantity traded? You will be assessed against the following criteria:

The accuracy of your answers
The appropriate use of graphs and diagrams to address the problem
The structure and clarity of the essay
The thoroughness of your answers
Your written communication skills

Theory to be included in the assignment:
7. Scarcity
8. Opportunity cost
9. Demand/Supply and Equilibrium
10. Elasticity of demand/supply
11. Consumer...
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