Question

Locate a recent article or event (published within the last year) that highlights your relevant microeconomics topic. Use the Hunt Library, newspapers, new stations, or other credible sources to discuss how your topic aligns with microeconomics. Include the following in your discussion:

• State the article or event you selected.
• Identify the microeconomic concept(s).
• Describe your findings.
• Analyze the relevance to real-life applications.

Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.

Answer 1

Solution

Equilibrium Point is determine by the market forces. Market is the place where buyers and sellers interact to sell or buy the goods or service. There is no intervention of government. In terms of Adam Smith language:-Invisible Hand

• Let us take an example of Agriculture Product i.e Rice. Income is constant of a Person.
• with the given income, a person can take 20 kg of quantity of Rice at equilibrium price $30.
• Suppose if the Price of a Rice Increases $40 then the quantity of Rice will decreases 15 i,e movement along the demand curve.
• Here, Price, Income, taste and preference will effect the demand of rice(shift the demand curve right ward).Suppose the person's income increases so demand curve shift to right ward and due to shifting of demand curve, quantity demand and Price of Rice will Increases
• i.e movement along the supply curve. Here, person real purchasing power increase.Now lets see the determinants of Supply of Rice that shifts the supply curve are (a) Productivity of land (b) Rain (c) Use of fertilizer (d) workers productivity. These variables shift the supply curve right ward so the price of Rice will decreases and the quantity of Rice demanded will Increase.

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