Essay About Zhang Zhematric No. And Principles Of Economicsassignment 1Name

Ecn 3100 – Principle of Economics
[pic 1]ECN 3100 PRINCIPLES OF ECONOMICSASSIGNMENT 1NAME：ZHANG ZHEMATRIC NO.：181186Name: ZHANG ZHEMatric No.: 181186Subject: Principles of Economics ECN (3100)Question AA change in demand shows how non-price variables cause a shift (change in) of demand to a new demand function or curve; whereas, a change in quantity demanded depends only on a change in the price of the particular good being analyzed. Six main factors lead changes in changes in demand. They are changes inThe prices of related goods – substitutes and complementsExpected future pricesConsumers’ incomeExpected future income and creditPopulation of consumersPreferences and tastes of consumersOnly one factor leads changes in quantity demanded, it is the price of the good. Name: ZHANG ZHEMatric No.: 181186Subject: Principles of Economics ECN (3100)Quantity supplied of a good or service is the amount that producers plan to sell during a given time period at a particular price; whereas, supply refers to the entire relationship between the price of a good and the quantity supplied of it. Supply is illustrated by the supply curve and the supply schedule; whereas, quantity supplied refers to a point on a supply curve – the quantity supplied at a particular price. A shortage occurs when the price of a good is lower than the equilibrium price which is the price at which the quantity demanded equals the quantity supplied. This leads to the quantity demanded exceeds the quantity supplied, therefore, a shortage occurs. An indifference curve is a line that shows all the combinations of goods among which a consumer is indifferent. A budget constraint is the boundary between a household can and cannot afford, given its income and the price of goods. Name: ZHANG ZHEMatric No.: 181186Subject: Principles of Economics ECN (3100)To choose the optimal point, first, to find a point of interception on the budget line and the highest attainable indifference curve of the consumer. Second, check if the marginal rate of substitution between the two goods at the point is equals to the relative price of the two goods, then, it will be the optimal point. Question BThere has been an increase in demand. After the New Year, many people make the decision to eat healthier, more consumers’ preferences lead to an increase in demand for organic food and naturally made meals. There has been a decrease in supply.Severe weather, such as the drought in the Southeast of the US, causes a less than normal production of organic farm. This leads to a decrease in supply of organic food.