Micro Economics

Micro Economics Assignment 2

With the aid of add up and read diagrams, cautiously explain:

a.Why the set of tomatoes fluctuates more than the legal injury of tinned dope up

b.how a substantial increase in labour productivity in the computer production exertion might impinge on:

1-the price and output of computers

2- the price and output of scanners

c.The possible effects of price and output of coal when demand and supply decrease (i.e shift) everyplace the same time period.

d.Why the prices of houses in the uk increased on modal(a) by 12% in 2000 even though the supply of houses increased by around 200000 home

e.How an increase in vilify fargons (caused by spiralling rail track repair costs) will affect the price of national coach fares between London and cities in the north of England

a.Prices of tomatoes will fluctuate due to the changes in seasons. When in season the price of tomatoes will be pretty stable, it is some likely to meet equilibrium. Whereas when out of season the price for the commodity will increase due to a shortness in supply. This can be overcome by importing tomatoes or increasing the price of them to lower the demand, importing goods can be expensive though.

Tinned soup on the other hand is a manufactured preseavable good that can be stored, therefore if demand increased in the winter, market supply can be added to by reducing stocks.

The demand exceeds supply in the summertime for tomatoes but will contract when the seasons come around to winter. It should arena equilibrium in the spring. This causes the variation in price.

Whereas tinned soup should stay at equilibrium all year round.

b.Computers and Scanners are complementary goods; if the labour productivity in the computer industry has an increase then the supply of computers would increase causing the...

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