Question

Instructions:

1. All the questions should be answered with a graph
2. Graphs should be made in excel and pasted in the word
3. Explanation must be handwritten not typed
4. The assignment should be very neatly done or else it will not be considered for evaluation.

Q4. Consider product X is Toyota car. Explain with a graph how the demand of Yaris car will be affected Increase in the Price of Majda car .

Q5. Differentiate between Price and Non price determinant supply. Explain the  answer with help of Supply schedule and graphs.

Answer 1

4) If there is increase in price of majda cars, consumers will look for cheaper alternative available which result in increase in demand of Toyota and shift demand curve to its right from AD to AD1 which resut in increase in price of Toyota cars from P to P1 and increase in output from Y to Y1.

5) Non price determinant of supply:

• Number of sellers
• Technological advancement
• Tax of producers
• Availability of raw material
• Price of input

Price determinant says that quantity supplied increase as price increase.

Price	Quantity Supplied
1	2
2	4
3	6
4	8
5	10

Increase in any of the non price factor will shift supply curve to its right frm AS to AS1 in diagram below.

Decrease in any of the non price factor will shift supply curve to its right frm AS to AS1 in diagram below.