, ECS1501 Assignment 3 (COMPLETE ANSWERS)
2025 - DUE 21 July 2025; 100% TRUSTED
Complete, trusted solutions and explanations.
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
2025 - DUE 21 July 2025; 100% TRUSTED
Complete, trusted solutions and explanations.
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
