Using Graphs, Explain What Will Happen to Equilibrium Price and Equilibrium

question 3

Essay

Using graphs, explain what will happen to equilibrium price and equilibrium quantity of a product as a result of each of the following scenarios:
a. A rise in the number of buyers and a decrease in the cost of producing the product.
b. A decrease in the number of suppliers and an increase in the number of buyers.
c. An increase in the cost of production and a decrease in consumers' income.
d. Advances in the technology used to produce the product and a decrease in the price of a substitute.
e. A decrease in the tax on the product imposed on consumers and a decline in the price of a complement.
f. A government program that subsidizes the price of the product to consumers and a tax imposed on the producer.

---

Definitions:

Physiological Needs

Basic physical requirements including air, water, food, shelter, and sleep, considered the first level of needs in Maslow's hierarchy.

Esteem Needs

Refer to the human desire for respect, self-esteem, and recognition from others, forming one of the higher levels in Maslow's hierarchy of needs.

Security Needs

Fundamental psychological or physical needs that include safety, health, and well-being.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.