1. (a) What is Supply law? Write down the factors that shift the supply curve. (b)...

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1. (a) What is Supply law? Write down the factors that shift the supply curve. (b) What are the factors that determine elasticity of any good? (c) Suppose that the market demand for oranges is given by Q = 1000 – 250P and the market supply of oranges is given by Q = 150P, where P is the price of oranges and Q is the number of oranges. 1) What are the equilibrium price and quantity for oranges? Illustrate your answer graphically. (ii) What will happen to equilibrium price and quantity of oranges if the price of income of our consumer increases? (iii) What will happen to equilibrium price and quantity of oranges if seeds of oranges become very expensive? 1. (a) What is Supply law? Write down the factors that shift the supply curve. (b) What are the factors that determine elasticity of any good? (c) Suppose that the market demand for oranges is given by Q = 1000 – 250P and the market supply of oranges is given by Q = 150P, where P is the price of oranges and Q is the number of oranges. 1) What are the equilibrium price and quantity for oranges? Illustrate your answer graphically. (ii) What will happen to equilibrium price and quantity of oranges if the price of income of our consumer increases? (iii) What will happen to equilibrium price and quantity of oranges if seeds of oranges become very expensive?

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a Supply Law is a core principle of economic theory It states that while keeping other factors constant an increase in price of a particular commodity will result in increase in the quantity supplied ... View the full answer