Supply and demand are foundational concepts , Economics assignment help

    Question description

    discuss the situation by writing the solutions, and then show the
    solutions and how you got here in one or more graphs or flowcharts.
    Scenario One
    Supply and demand are foundational concepts in understanding economic
    theory. Whether you are a coffee drinker or not, you have been tasked
    to examine the impact of supply and demand when dealing with the coffee
    retail industry. A few companies probably come to mind. Pick a major
    coffee retailer, and then contemplate what has been happening to both
    the supply and demand for this product.
    Next, analyze the following scenario that deals with what happened in the coffee industry at the beginning of the last decade:
    In the early part of the last decade, there was an overproduction of
    coffee. The price dropped so low that producers’ costs were higher than
    the market price. The reason this happened was that market prices became
    high before this, and the supply of coffee increased substantially. In
    the meantime, demand for coffee and everything else remained the same.
    Coffee prices, as a supply input, went down. In the meantime, gourmet
    coffee houses began appearing, which began charging a premium for
    coffee in the period of decreasing prices. Gourmet coffee houses tend to
    open in high-rent areas and cater to higher income consumers. Because
    of the change they created for taste and preferences and the higher
    income market, the gourmet coffee houses had a win-win in a period of
    falling wholesale prices and increasing retail prices.
    Explain the changes in the supply and demand creating a supply and demand curve based on the above information.
    In this graph, be sure to demonstrate how these changes affected the price and quantity levels of supply and demand.Based on this analysis, how were coffee retailers faring in the marketplace?
    Scenario Two
    In this next scenario, start your discussion by examining the differences between the definitions of the macroeconomics and microeconomics. Next, discuss how the concepts of supply and demand relate to (1) microeconomics and (2) macroeconomics.
    For you to demonstrate understanding of supply and demand from the
    perspective of microeconomics versus macroeconomics, pick 2 of the 10
    scenarios below and discuss the following questions:
    Is the scenario a macroeconomic or microeconomic example of supply and demand?Is this impacting supply or demand?   Is this example going to experience a shift or a movement of supply or demand?As a result of this change, what happened to equilibrium price and quantity?
    The 10 examples for you to consider are as follows:
    After Hurricane Katrina, what happened to the price of fish?After the development of the microchip, what happened to the price of computers?After the government raised tariffs on imported cheese, what happened to the price of domestic cheese?Polyester suits have become trendy again. What happens to their price?Internet auction sites are becoming more popular, and people are using them more and more.A new health report came out that said red wine lowers cholesterol.The government raises taxes.Inflation increases.Immigration laws are relaxed.The government increases spending.

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