Consider the market for ice cream . Using appropriate diagrams, explain how each of the following events will impact the equilibrium price and quantity of ice cream.
a. The population falls.
When the population falls, there is surplus of the ice-cream in the market and the sellers find their freezers increasingly full of ice-cream. They would want to sell but they are unable because of the reduced demand as a result of the reduced in demand due to fall in population. This way the sellers will reduce the prices to respond to surplus.
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