Question 1. Illustrate each of the following events using a demand and supply diagram for bananas (use a separate graph for each part). You should show the initial equilibrium, then clearly indicate which curve you shift in which direction and why. Explain why you shifted the curve(s) you did. a) Reports surface that the fruit is infected with a deadly virus b) Consumers income drops c) The price of bananas falls d) The price of oranges falls e) Consumers expect the price of bananas to fall sometime in the future Don't forget to label everything, specially when you are drawing graphs. Label every axis, demand, supply, equilibrium price, equilibrium quantity, etc.

Question 1. Illustrate each of the following events using a demand and supply diagram for bananas (use a separate graph for each part). You should show the initial equilibrium, then clearly indicate which curve you shift in which direction and why. Explain why you shifted the curve(s) you did. a) Reports surface that the fruit is infected with a deadly virus b) Consumers income drops c) The price of bananas falls d) The price of oranges falls e) Consumers expect the price of bananas to fall sometime in the future Don't forget to label everything, specially when you are drawing graphs. Label every axis, demand, supply, equilibrium price, equilibrium quantity, etc.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 10P

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