Question

Identify in each of the situations who is affected (demand / supply) and how it affects (increases / decreases) :  We have Identified in each of the situations who is affected (demand / supply) and how it affects (increases / decreases) :  please illustrate in a graph how each situations are effected.  So we are able to see it visually the outcome.   

1) THE RICE OFFER INCREASES. Offer Increase

2) LIKES AND PREFERENCE FOR A BEAUTY PRODUCT FOR EYELASHES HAVE BEEN REDUCED. Demand Decreases

3) FOR THE DISTRIBUTION OF A NEW GAS DRINK, 35 NEW PRODUCERS HAVE ENTERED THE MARKET. Offer Increase

4) THE EXPECTATIONS OF THE CONSUMER ABOUT A SERVICE HAVE BEEN NEGATIVELY AFFECTED FOR THE IMMEDIATE FUTURE, SO YOU DECIDE TO LEAVE THE MARKET AND CHOOSE ANOTHER TYPE OF SERVICE. Demand Decreases

Answer 1

1. Increase in the rice offers will increase increase the demand of rice in the market because offers attract consumers towards purchasing the product in the product because bit reduces price and thus increases consumer surplus in the market.

2. Since likes and preferences of a consumer towards a beauty product has been reduces, this will reduce the quantity demanded at each price level and thus demand of the product will reduce and thus demand curve will shift leftwards.

3. Entry of new producers in the market will increase the quantity supplied at each price level in the market and thus supply curve of the product will shift to right.

4. Reduction in the consumer sentiment will reduce consumption expenditure and thus demand will decrease at each price level of the service for which consumer's expectations are negatively impacted.