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Impact of Health and Supply on Oranges

A hurricane damages the cotton crop in South Carolina, decreasing the supply of cotton and shifting the supply curve for sweatshirts left. When the price of leather jackets falls, demand for sweatshirts decreases as well since leather jackets and sweatshirts are substitutes, shifting the demand curve left. A new requirement for colleges that students do morning exercise in appropriate attire increases demand for sweatshirts, shifting the demand curve right. The invention of new knitting machines allows for increased production of sweatshirts within the same time period, increasing supply and shifting the supply curve right.

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35 views1 page

Impact of Health and Supply on Oranges

A hurricane damages the cotton crop in South Carolina, decreasing the supply of cotton and shifting the supply curve for sweatshirts left. When the price of leather jackets falls, demand for sweatshirts decreases as well since leather jackets and sweatshirts are substitutes, shifting the demand curve left. A new requirement for colleges that students do morning exercise in appropriate attire increases demand for sweatshirts, shifting the demand curve right. The invention of new knitting machines allows for increased production of sweatshirts within the same time period, increasing supply and shifting the supply curve right.

Uploaded by

TAYYABA AMJAD L1F16MBAM0221
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Q4

A. A hurricane in South Carolina damages the cotton crop.


With less supply of cotton for making clothes, supply of sweatshirts will decrease and supply
curve will shift to the left.

B .The price of leather jackets [Link] and leather jackets are substitute. With the
falling of the price of leather jackets, people tend to buy more leather jacket and fewer
sweatshirts. Therefore the demand of sweatshirt decrease and demand curve shift to the left.
C .All colleges require morning exercise in appropriate attire.
Since all colleges are required morning exercise in appropriate attire, demand of sweatshirt will
increase in which it shift the demand curve to the [Link] knitting machines are
[Link] new knitting machines invented, more sweatshirts can be produced within the
same period of time, in which the supply increase and supply curve shift to the right.11. Consider
the following events: Scientists reveal that consumption of oranges decreases the risk of diabetes,
and at the same time, farmers use a new fertilizer that makes orange trees more productive.
Illustrate and explain what effect these changes have on the equilibrium price and quantity of
[Link] scientists reveal that consumption of oranges decrease the risk of diabetes, people
will buy more orange in order to prevent the diseases. With more people buying oranges,
demand of oranges will [Link] farmers use a new fertilizer that makes orange trees more
productive, more orange will be available in the market and supply of oranges will increase.
However, for equilibrium price, it depends on whether the increase in demand or supply is
higher.

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