ECON 201 Assignment No. 1 Price of product and Economist Questions

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Q.1. We knows that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? Can you show this graphically?

Q.2. Suppose, as an economist, you are asked to analyze an issue unlike anything you haveever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situation?


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¬ This Assignment must be submitted on Blackboard (WORD format only) via the allocated folder.
¬ Email submission will not be accepted.
¬ You are advised to make your work clear and well-presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.
¬ Assignment will be evaluated through BB Safe Assign tool.
¬ Late submission will result in ZERO marks being awarded.
¬ The work should be your own, copying from students or other resources will result in ZERO marks.
¬ Use Times New Roman font 12 for all your answers.
¬ Be two to four pages in length, which does not include the cover page, abstract or required reference page, which are never a part of the content minimum requirements.

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Assignment No. 1 Course: Macroeconomics(ECON201) Student name: Academic Year:1439-1440 H Student ID: Semester: 2nd Student grade: / 3 CRN: Level of the marks: Instructions: ➢ This Assignment must be submitted on Blackboard (WORD format only) via the allocated folder. ➢ Email submission will not be accepted. ➢ You are advised to make your work clear and well-presented; marks may be reduced for poor presentation. This includes filling your information on the cover page. ➢ Assignment will be evaluated through BB Safe Assign tool. ➢ Late submission will result in ZERO marks being awarded. ➢ The work should be your own, copying from students or other resources will result in ZERO marks. ➢ Use Times New Roman font 12 for all your answers. ➢ Be two to four pages in length, which does not include the cover page, abstract or required reference page, which are never a part of the content minimum requirements. Assignment Questions Q.1. We knows that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? Can you show this graphically? (1.5 Marks) Q.2. Suppose, as an economist, you are asked to analyze an issue unlike anything you have ever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situation? (1.5 Marks) Answer:- ...
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Tutor Answer

Clardan
School: UIUC

Hey there, here is the solution. let me here if you have any questions.Thank you.

Running Head: ASSIGNMENT NO. 1

1

Assignment No. 1
Name
Institution Affiliation

ASSIGNMENT NO. 1

2

Q1
When consumers expect a rise in price in a certain product, automatically they will be willing to
buy that product at the present time when the price is still favorable to them. Some may buy the
product and preserve to use it in the future because the product is likely to increase in price. This
will lead to an increase in demand for that product at the present time.
The graph below illustrates the real scenario of an expected increase in price and the way the
demand will be affected at the present time.

By keeping the supply of that particular product constant, the price and the demand will adjust as
per the graph above.
When the price is at P1, the demand is at D1. When the consumers expect the price of the product
to increase in the future to P2, the demand at the present time will start increasing until it reaches
D2. At D2, the price of the commodity will have reached the ...

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Anonymous
Goes above and beyond expectations !

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