MICROECONOMICS PRACTICE
QUESTIONS WITH ANSWERS
Short Response
1. Consider the market for face masks. When COVID-19 lockdowns
started in March, healthcare workers and the general public complained
about a lack of face masks. 2 Now, however, several months later, there is
no significant lack of face masks, and the govern- ment
, MICROECONOMICS PRACTICE
QUESTIONS WITH ANSWERS
mandates the wearing of facial protection in public indoor settings. Using
a supply and demand diagram, explain how this initial shortage of face
masks rectified itself. (Hint: the transition to a new equilibrium) (15%)
This graph above shows the initial situation of demand rise during COVID-
19, which shifts the demand curve D rightward to D1
After several months, the supply of face masks increases to cope up demand
and supply curve shifts rightward from S to S1.
, MICROECONOMICS PRACTICE
QUESTIONS WITH ANSWERS
2. According to research I published with Liam Elbourne, my former
student, Western Roman emperors were more likely to be assassinated
following droughts. The droughts made Roman soldiers hungry and
angry, and this translated into a higher risk of political violence. Clearly
explain this situation using a supply and demand diagram in the market
for grains. (15%)
Assassination of roman emperors is manily depends on the rainfalls and
lack of food for the roman military. It leads to political violence. During
drought in Rome, the production of foodgrains decreased,due to which ,the
supply curve shifts leftward from S to S1, due to which equilibrium price
increases and equilibrium quantity decreases.
3. Economic laws have been true throughout human history. As an
example, consider the following passage, from Professor Samaddar’s
lectures on the economy of Ancient India:
QUESTIONS WITH ANSWERS
Short Response
1. Consider the market for face masks. When COVID-19 lockdowns
started in March, healthcare workers and the general public complained
about a lack of face masks. 2 Now, however, several months later, there is
no significant lack of face masks, and the govern- ment
, MICROECONOMICS PRACTICE
QUESTIONS WITH ANSWERS
mandates the wearing of facial protection in public indoor settings. Using
a supply and demand diagram, explain how this initial shortage of face
masks rectified itself. (Hint: the transition to a new equilibrium) (15%)
This graph above shows the initial situation of demand rise during COVID-
19, which shifts the demand curve D rightward to D1
After several months, the supply of face masks increases to cope up demand
and supply curve shifts rightward from S to S1.
, MICROECONOMICS PRACTICE
QUESTIONS WITH ANSWERS
2. According to research I published with Liam Elbourne, my former
student, Western Roman emperors were more likely to be assassinated
following droughts. The droughts made Roman soldiers hungry and
angry, and this translated into a higher risk of political violence. Clearly
explain this situation using a supply and demand diagram in the market
for grains. (15%)
Assassination of roman emperors is manily depends on the rainfalls and
lack of food for the roman military. It leads to political violence. During
drought in Rome, the production of foodgrains decreased,due to which ,the
supply curve shifts leftward from S to S1, due to which equilibrium price
increases and equilibrium quantity decreases.
3. Economic laws have been true throughout human history. As an
example, consider the following passage, from Professor Samaddar’s
lectures on the economy of Ancient India:
