ECS1501-25-Y_ Assessment Assessment 3 Please answer all the questions using the allocated number of words. Include the word count in your document as shown in the Submission Format document (attached below). Please do not exceed the alloc

ECS1501-25-Y_ Assessment 3 2025 600956 Assessment 3 Please answer all the questions using the allocated number of words. Include the word count in your document as shown in the Submission Format document (attached below). Please do not exceed the allocated word count. The maximum word count for all three questions together is 350 words. The sections that exceed the allocated word count will not be assessed. If you do not know how or cannot draw diagrams in Word, the best solution is to draw the diagram using a pen and paper. Take a photo of your drawing and insert it into the Word document as a picture. Then save the document as a PDF. Upload only one PDF document that contains the answers to all three questions, using the prescribed Submission Format. You are expected to do your own work. Please read the section on cheating in Tutorial Letter 101. Please follow the general guidelines for answering the assessment (attached below) when you answer the following questions: 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. Question 2 (5 marks) No words allowed, only a diagram with annotations To answer this question, only a diagram with annotations is required. Suppose beer and peanuts are complements. In anticipation of warm weather conditions, Injabulo Breweries, the brewers of Number One beer, increased the production of Number One beer. Show on a diagram how this will affect the market for peanuts. Indicate how the equilibrium price and equilibrium quantity of peanuts will change. The direction of any changes should be indicated using arrows. Question 3 (13 marks) Maximum word count: 250 words Beetle Juice, a budget-friendly drinks producer targeting the student market, is currently facing supply challenges due to a key ingredient being negatively affected by tariff policies introduced under President Trump’s “Liberation Day” announcement. While Beetle Juice has enjoyed steady sales because of its low price, it remains a second-choice option for many students. When financial circumstances improve, such as during student grant payout periods, they tend to switch their preference to more popular big-brand alternatives like Rhino Juice or Makhulu Juice. With the National Student Financial Aid Scheme (NFSAS) grants currently being disbursed, explain how the market for Beetle Juice is affected by these changes. Clearly indicate the effect on the equilibrium price and equilibrium quantity of Beetle Juice. You should use a combination of diagrams and written explanations in your answer.