Question

Please help me with my econ homework?

19. Related to the Economics in Practice Market for Brown Rice The growing popularty of quinoa has had an impact on the market for brown rice. With its higher fiber, protein, and iron content, quinoa is replacing brown rice asa staple food for many health-conscious individuals. Draw a supply and demand graph that shows how this increase in demand for quinoa has affected the market for brown rice 1.) Using the line drawing tool, draw the initial market demand curve. Label it as 2.) Using the line drawing tool, draw the initial market supply curve. Label it as 3.) Using the line drawing tool, draw one new curve (either a demand or curve) that captures the effect quinoa's popularity has on the market for brown rice. Label this curve either 'D'or'S1 Carofully follow the instructions above and only draw the required objects. Quantity According to the graph, the equilibrium price of brown rice has and the equilibrium quantity of brown rice has If brown rice producers seek to return the price to its initial equilibrium value, they would need to (3) Is it possible for brown rice producers to return both the price and quantity to the the supply of brown rice initial equilibriums without a change in consumer behavior? OA. No, in order to move back to the initial equilibrium, a change in consumer behavior may be needed B. No, in order to move back to the initial equilibrium, a change in consumer behavior must take place. Yes, it is possible to move back to the nitial equilibrium without a change in consumer behavior O C. (1) O risen (2) risen (3) O decrease O fallen O fallen O increase

Answer 1

Market for Brown Rice :

In this question we analyse the effect of change in demand for substitute goods on market equilibrium . We know that market is in equilibrium where the quantity demanded equals quantity supplied . Since this change occurs due to a factor which is not price change of brown rice so here the demand and supply curves will shift . There will not be movement along the curve .

Market for brown rice: In this question we analyse the effect of change in demand for substitute goods on market equilibrium . We know that market is in equilibrium where the quantity demanded equals quantity supplied Since this change occurs due to a factor which is not price change of brown rice so here the demand and supply curves will shift . There will not be movement along the curve quinoa and Brown rice are substitutes Increase in demand for Quinoa causes fall in demand for brown rice. People will demand less brown rice. The demand curve shift left. (1) decreases (2) decreases (3) decreases supply of brown rice (B) no, in order to move back to the initial equilibrium, a change in consumer behavior must take place. When people are replacing brown rice by quinoa the equilibrium quantity is ought to decline at any price level.