Question: Please i want question e and f only. Styles Editing QUESTION 1 (20 MARKS) Recent news articles have indicated that the increasing cost of inputs

 Please i want question e and f only. Styles Editing QUESTION

Please i want question e and f only.

1 (20 MARKS) Recent news articles have indicated that the increasing cost

Styles Editing QUESTION 1 (20 MARKS) Recent news articles have indicated that the increasing cost of inputs and effects of drought have influenced the prices of wheat and grains in Australia. a. Identify whether input prices and drought are non-price determinants of demand or non-price determinants of supply. (1 mark) b. Construct a graph of the wheat and grains market assuming before the drought, it is in equilibrium. Then on the same graph, show the shift in the relevant curve of the wheat and grains market; that depicts the impacts of drought and/or changing input prices. (Label all aspects of the original graph, as well as the shift in the relevant curve and the new levels). (4 marks original graph; 2 marks for relevant curve shift & new labelling). (6 marks) c. Explain the graph you have drawn (from 1.b. above), in terms of which curves are moving and any other elements that have changed. (2 marks) d. Explain how each of these non-price determinants from 1.a. above, affect the curve you shifted from 1.b above. (3 marks) e. Now imagine that consumers expect prices for wheat and grains will remain high for some time so they seek out alternative/substitute products. On a new graph, demonstrate which curve will move and where the new equilibrium (E2), as well as price and quantity levels (P2, Q2) will be for the wheat and grains from the existing (P1, Q1). Explain the movements of the relevant curve in your new graph. (Hint: You DO NOT need to make up any prices). (4 marks) f . The alternative products (e.g. Artificially manufactured grain products; rice & alternative wheat) have been impacted by the "substitute effect". Show on a new graph, how any changes in demand or supply for these substitute/alternative products, have been affected. Clue: You will need to construct two graphs here to fully illustrate the effects and changes to both products!!! (4 marks)

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