ECS2601 Assignment 1 semester 1 2024

Microeconomics - Correct Answer A branch of economics that deals with the behaviour of individual economic units. Economic Model - Correct Answer The interacting relationship between two or more economic variables. 3 Fundamental Questions of Economics - Correct Answer 1. What to Produce 2. How Much to Produce 3. For Whom to Produce Emergence of Price - Correct Answer The interaction between consumers and producers interacting on the market. The Market is in Equilibrium - Correct Answer The market is in Equilibrium with no Surplus or shortages. Thus there are no pressures for the prices to change. Market Mechanism - Correct Answer The tendency in a free market for Price to change until the market clears. Equilibrium Price - Correct Answer The price at which the market is in equilibrium. Thus the quantity supplied equals the quantity demanded at a specific price. Qs = Qd Disequilibrium - Correct Answer Any point on the graph that is not at the equilibrium point.