Question: Following should be the Learning Outcomes from the tasks: LO1. Explain and deal with the current theories and practices of microeconomics. LO2. Develop a sound

Following should be the Learning Outcomes from the tasks:

LO1. Explain and deal with the current theories and practices of microeconomics.

LO2. Develop a sound understanding and describe the fundamentals of microeconomics and relevant behaviors

Tasks (All tasks are equally weighted):

1. Explain the law of supply. How is it illustrated on a diagram?

2. Currently, the shop sells its beers at $ 3.00 per bottle, drawing monthly demand of 3,000 bottles. Today, the shop's management has decided to cut down the price by $ 1 per bottle, which is expected to increase the monthly demand by up to 4500 bottles. Calculate the price elasticity of the beer demand based on the given information and explain how the calculated elasticity reflects the relationship between the price and the demand of the beer.

3. The German government decided to increase the minimum wage to 12 Euros per hour. Assume that the minimum wage is higher than the equilibrium wage rate in the labor market. By using the labor demand and supply diagram, clarify how the raised minimum wage affects labor market.

Kindly elaborate each and every answer.

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