BUS114 : Microeconomics - "Demand and Supply Curves for 19-Inch colour TVs" - Business Economics Assignment

Internal Code : MAS5240

Economics Assignment : 

1. Consider the table below detailing the demand and supply curves for 19-inch colour TVs a) Draw a diagram based on the above table and label the equilibrium price and quantity (the diagram does not need to be to scale). Drawing them in programs like “paint” and pasting it into the document before making your document a PDF b) Now assume that a TV is a normal good and incomes rise. Consumers are now willing and able to purchase 500 more TVs per month at every price. Show this change on your graph and explain what has happened to equilibrium price and quantity as a result. 2. Draw the market for bananas in equilibrium. Show and explain what would happen on your graph if at the same time i) more banana suppliers entered the market and ii) people’s incomes went up. How would this affect the price and quantity of bananas in the market?