Question

Using supply-and-demand diagrams, show the effect of the following events on the market for Pickles. Comment on what happens to the equilibrium price and quantity. 22. (5pts.) An early frost cut cucumber production by 25 percent 23. (5pts.) Fast food restaurants were required to put pickles on all hamburgers

Answer 1

22)

It can be mentioned that if the Frost cut the production of cucumber then there would be less supply of cucumber to the pickles as a result of which the supply of pickles would reduce with which the supply curve will shift to the left and with is the price will increase and the equilibrium quantity will decrease as shown in the figure

svg 2

23) if all the hamburgers are required to give pickles then the demand for pickles would increase as a result of which the demand curve shift to the right with which the price of pickles increase and the quantity in equilibrium of pickles also increase as shown in the figure above