Basic economics comprehension IG1

Label the diagram

e

d

c

b

a

Supply Curve

Q1

Equilibrium

Demand Curve

P1

The market for ice cream is at P1Q1. The summer is unexpectedly cold and stormy. Point to the new equilibrium point due to these circumstances.

The market for bicycles is at P1Q1. Bicycle wheels become more expensive. Point to the new equilibrium point due to this circumstance.

The market for laptops is at P1Q1. The global cost of silicone for computer chips is experiencing a shortage. At the same time, younger people increasingly prefer tablet computers rather than laptops. Point to the new equilibrium point due to these circumstances.

The market for international schooling in China is at P1Q1. The average income of a Chinese family increases by 30%. Point to the new equilibrium.

The production possibility curve is at point AF, representing the total production possibilities of the economy. Identify the point of inefficient production.

The production possibility curve is at point AF, representing the total production possibilities of the economy. Identify the point where the economy os producing more of Good X than Good Y.

The production possibility curve is at point AF, representing the total production possibilities of the economy. Identify the point which is impossible for the economy to produce without trade.

The economy has benefited from a policy of immigration, which has increased the workforce. Which PPC shows the effects of increased workforce for the production of maize and beans?

Identify the perfectly inelastic demand curve.