Microeconomics Supply and Demand
Consider the initial effect of each of the following events on the underlined market. You are expected to:
Indicate whether there is a change or movement in the demand or supply curve.
With the help of a diagram, demonstrate the initial diagram (before the changes) and the expected changes (in quantity demand, quantity supply and equilibrium point).
Be sure to label the axis, curves, and equilibrium point.
Questions (Answer all the questions)
1. Hand Sanitizer. The Health minister requests the general public to wear a face mask to prevent from the COVID-19 infection (5 marks).
2. Apple market. The wages of apple pickers increase due to government legislation (5 marks).
3. Milk Market. Due to the weather, tea production cost has increased, and the supplier decided to increase the tea price (5 marks).
