How do the concepts of microeconomics help us understand the factors that affect shifts in supply and demand on equilibrium price and quantity?

 

Scenarios

  1. A cancer preventing apple is invented

Supply goes > up

Demand goes > up

  1. 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?
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