Answer to Question #308645 in Microeconomics for roro

Question

Select and name a market of any well-known product (left upon your imagination), draw its market diagram, state and name four different factors that might cause changes, showing the changes in equilibrium price and quantity.

Answer 1

Bread is common product that is used by majority of people for consumption. The market price of bread is relatively cheap, making it the main reason why people purchase it. However, there are factors that can lead to changes in demand of bread including changes in purchase price, changes in taste and preferences of customers, changes in price of substitute or complementary goods, and changes in demographic population. All these factors will either lead to a rise or fall in equilibrium price and quantity depending on whether the changes favored the purchase of bread or a reduction in its purchase.