- A cancer preventing apple is invented
Supply goes > up
Demand goes > up
- Apple pickers become unionized (wage increase)
Supply goes < down
Demand goes < down
From the two above scenarios writea 1,100 word paper that:
- Identify if the scenarios above aremicroeconomics or macroeconomics principles or concepts.
- Explain why you have categorized these scenarios as principles or concepts of microeconomics or macroeconomics.
- Identify at least one shift of the supply curve and one shift of the demand curve in the above scenarios.
- Explain what causes the shifts, and how each shift affects the price, quantity, and decision making within the above scenarios.
- Include responses to the following:
- How should we apply what we have learned about the above scenarios about supply and demand to our workplace or understanding of a real-world product with which we may be familiar?
- How do the concepts of microeconomics help us understand the factors that affect shifts in supply and demand on equilibrium price and quantity?
- How do the concepts of macroeconomics help us understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?
- How does the price elasticity of demand affect a consumer’s purchase and the firm’s pricing strategy as it relates to the above scenarios?