a. Outbreak of mad cow disease kills off much of the cattle stock. b. The price of chicken, a substitute, declines sharply. c. A worldwide economic boom results in higher average incomes.
d. Beef (red meat) is shown to cause high blood pressure in laboratory rats.
e. Rumor of a massive outbreak of Bird Flu spreads f. Rumor is started that leads consumers to believe beef will be more expensive. (Producers know the rumor is untrue).
2. Explain using a diagram why during Eid Season the price of cloth increases even though the supply of cloth is high.
3. Explain why before Eid the various transports charge extra money?
4. Explain why Mobile companies can charge lower call rate at night?
5. Consider the ipad market of Bangladesh. Indicate separately the effects of the following events on the equilibrium of ipad market a. Apple offers surround sound system installed with each ipad with out charging any extra price. b. Tornado destroys production plants of ipad. c. Samsung reduces its price.
6. The demand and supply schedules for small bags of noodles in millions of bags per year are: (Consider 52 week in a Year)
Price/bag Quantity Demanded Quantity Supplied 10 50 70 9 60 65 8 62