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Assignment 1

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16 views2 pages

Assignment 1

Uploaded by

n01678989
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
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1.

Fill in the following table stating how the event would affect demand or supply for gold
picture frames in Ontario. That is, will the curve shift to the left, to the right, will there be
movement along the curve (to the left or to the right) or will there be no impact in the curve.
(3 marks – ½ mark each)

Event Impact on Demand (will the


demand curve shift to the
left, the right, or remain the
same)

1 Picture frames become popular as wedding gifts. Shifts to the right

2 The price of picture frames decreases. Remains the same

3 Fewer people print their photographs. Shifts to the left

Impact on Supply (will the


supply curve shift to the left,
the right, or remain the same)
4 The cost of the material to make picture frames Shifts to the left
increases.
5 Price of picture frames increase. Remains the same
6 A new technology makes it faster to assemble the Shifts to the right
frames.
2. Illustrate Scenario #1 above by drawing the impact on the market in a correctly
labeled graph. You do not need to invent numbers. Just make sure I know what
happens in the market and that the graph is properly labeled. Clearly identify the old
equilibrium and the new equilibrium. To do this you will need to draw the original
demand and supply and then draw new demand and supply curves where
appropriate. (3 marks – 1 mark for correct graph, 1 mark for correct change, 1
mark for identifying new E.)

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