ECS1501 Assignment 3
(COMPLETE ANSWERS)
2025 - DUE 21 July
2025
For more assistance contact:
100% TRUSTED WORKINGS, EXPLANATIONS & SOLUTIONS
, 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.
Please note: Since the cartoon is not provided, I’ll answer based on a common
economic cartoon scenario where oil prices fall due to excess supply (a surplus).
Adjust the answer if your cartoon reflects a different situation (like a shortage or
price ceiling).
Answer (100 words max):
(i) An economist would describe the market condition as a surplus or excess
supply.
(ii) The diagram should show the supply curve (S) and demand curve (D), with
price (P) on the vertical axis and quantity (Q) on the horizontal. The current price
is above equilibrium, causing quantity supplied > quantity demanded.
(iii) The surplus exerts downward pressure on price. As the price decreases,
quantity demanded increases and quantity supplied decreases until a new
equilibrium is reached where supply equals demand.
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
(COMPLETE ANSWERS)
2025 - DUE 21 July
2025
For more assistance contact:
100% TRUSTED WORKINGS, EXPLANATIONS & SOLUTIONS
, 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.
Please note: Since the cartoon is not provided, I’ll answer based on a common
economic cartoon scenario where oil prices fall due to excess supply (a surplus).
Adjust the answer if your cartoon reflects a different situation (like a shortage or
price ceiling).
Answer (100 words max):
(i) An economist would describe the market condition as a surplus or excess
supply.
(ii) The diagram should show the supply curve (S) and demand curve (D), with
price (P) on the vertical axis and quantity (Q) on the horizontal. The current price
is above equilibrium, causing quantity supplied > quantity demanded.
(iii) The surplus exerts downward pressure on price. As the price decreases,
quantity demanded increases and quantity supplied decreases until a new
equilibrium is reached where supply equals demand.
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
