ECS1501
Assignment 3
(COMPLETE
ANSWERS) 2025
- DUE 21 July
2025
100% TRUSTED WORKINGS, EXPLANATIONS & SOLUTIONS
For more assistance contact:
, ECS1501 Assignment 3
(COMPLETE ANSWERS) 2025 - DUE
21 July 2025
Question 1 (12 marks) Maximum word count: 100 words
This question is based on the following cartoon: (i) What
word/words will an economist use to describe the market
condition depicted in the cartoon (ii) Draw a diagram of
the market for oil that illustrates the market condition
depicted in the cartoon. (iii) Explain the adjustment
process to the new equilibrium position in the market for
oil.
To help you answer Question 1 (12 marks) clearly and concisely within the 100-
word limit, here's a suggested structured response. Since the cartoon is not
provided, I’ll assume it shows a market surplus—a common theme in such
questions. You can modify it slightly if your cartoon suggests a shortage or
another condition.
Answer:
(i) An economist would describe the market condition as a surplus.
(ii) (Diagram: A standard supply and demand graph where the price is set above
equilibrium, creating a surplus. Label the axes as Price and Quantity, the supply
and demand curves, the equilibrium point, and indicate the surplus area.)
(iii) Due to excess supply, producers lower prices to encourage demand and reduce
unsold stock. As price falls, quantity supplied decreases and quantity demanded
increases. This continues until the market reaches a new equilibrium where
quantity demanded equals quantity supplied.
Assignment 3
(COMPLETE
ANSWERS) 2025
- DUE 21 July
2025
100% TRUSTED WORKINGS, EXPLANATIONS & SOLUTIONS
For more assistance contact:
, ECS1501 Assignment 3
(COMPLETE ANSWERS) 2025 - DUE
21 July 2025
Question 1 (12 marks) Maximum word count: 100 words
This question is based on the following cartoon: (i) What
word/words will an economist use to describe the market
condition depicted in the cartoon (ii) Draw a diagram of
the market for oil that illustrates the market condition
depicted in the cartoon. (iii) Explain the adjustment
process to the new equilibrium position in the market for
oil.
To help you answer Question 1 (12 marks) clearly and concisely within the 100-
word limit, here's a suggested structured response. Since the cartoon is not
provided, I’ll assume it shows a market surplus—a common theme in such
questions. You can modify it slightly if your cartoon suggests a shortage or
another condition.
Answer:
(i) An economist would describe the market condition as a surplus.
(ii) (Diagram: A standard supply and demand graph where the price is set above
equilibrium, creating a surplus. Label the axes as Price and Quantity, the supply
and demand curves, the equilibrium point, and indicate the surplus area.)
(iii) Due to excess supply, producers lower prices to encourage demand and reduce
unsold stock. As price falls, quantity supplied decreases and quantity demanded
increases. This continues until the market reaches a new equilibrium where
quantity demanded equals quantity supplied.
