Question

Your assignment has two parts: story and diagram. Your story should describe and explain the elements of the story in supply and demand terms. It should be typed, double-spaced, between V2 and 1 page long. It should provide a summary of the story, and then an analysis in supply & demand terms. The supply & demand diagram illustrating your story may be hand-drawn or created on your computer. If it is hand-drawn, you should take a Criteria: • The diagram makes sense. • The story makes sense. • The diagram matches the story. Points off if you... • Cut the story short too soon. • Confuse terms (e.g. demand vs. quantity demanded). • Explain behavior as "irrational" or "crazy.” use simple demand and supply terms like supply, demand, equilibrium, Quantity supplied, Quantity demanded , surplus etc...

Answer 1

Salution' & Cut the estory short too soon. - Quantity In this figure with show that when Demand and Supply cutere cut each other then this boint equilibrium point ® Confuse teum Ceg. demand us quantity demanded) Demand: Demand refors to the all quantity that can be purchased at different puices. Quantity Demanded'. Quantity Demanded represents an exact quantity Chaw much) of a good one senvices is demanded by consumen at a particular price. Explain behavior as irrational " ou "crazy" I vrational behaviowe mainly know as the drug addiction u boor health pensons. Iurational behaviour hai implications for formulating economics policy. It means economists need to take into account the potential for trorationality... il potenta