BEA111 Introduction to Markets and the Economy - Assignment 1 Microeconomics Question 1 - 40 marks (1-3 sentences per 5

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Bea111 Introduction To Markets And The Economy Assignment 1 Microeconomics Question 1 40 Marks 1 3 Sentences Per 5 1 (138.52 KiB) Viewed 48 times

BEA111 Introduction to Markets and the Economy - Assignment 1 Microeconomics Question 1 - 40 marks (1-3 sentences per 5 marks and diagrams) Assume the demand curve for instant noodles in all countries is downward sloping and the supply curve is upward sloping. Read the following two news articles in order to answer the following questions. https://www.pedestrian.tv/news/instant- ... a-ukraine/ https://www.abc.net.au/news/2022-03-20/ ... ne-russia- war/100896348 a. Draw a diagram showing the 2020 annual market for instant noodles in Australia if the average price was $1.00 per 100 grams. Include a title and label the demand curve, supply curve, equilibrium price and quantity. (10 marks) b. Explain why $0.60 per 100 grams is not an equilibrium price. If the market price were temporarily at $0.60 per 100 grams explain how the market through the price mechanism would return to equilibrium. (10 marks) c. Assume the annual market for instant noodles in Australia in 2022 is initially the same as 2020. Explain why an increase in the price of wheat will affect either the demand or supply curves and how this will affect the price and the amount of instant noodles sold in Australia in 2022. Draw and use a diagram to help explain your answer. (15 marks) d. Why did the price of instant noodles rise in Japan, even though any increase in the price of wheat has yet to flow onto minute noodle producers? {You do not have to draw a diagram for this question}. (5 marks)