Question

Using properly labels diagram illustrate what will happen to the equilibrium price and quantity of muesli ( ceteris paribus) in the following scenario.
1. research has shown that muesli is good for the heart
2. the ongoing drought has affected grain ( one of the ingredients for muesli ) productions
3. discuss any three factors that can cause an increase in the demand of mueskil.

Answer 1

Question #67732, Economics / Microeconomics

Using properly labels diagram illustrate what will happen to the equilibrium price and quantity of muesli (ceteris paribus) in the following scenario.

1. research has shown that muesli is good for the heart

2. the ongoing drought has affected grain ( one of the ingredients for muesli ) productions

3. discuss any three factors that can cause an increase in the demand of mueskil.

Answer:

1. P ↑ Q ↑

2. P ↑ Q ↓

3. Increasing in income of customers

Increasing in price of substitute

Decreasing in price of complement goods

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