ASSIGNMENT

Assignment

Assignment

PROBLEM 1

A] Ice Cream Market

Price (Pence/Scoop)

Quantity Demanded (Millions of Scoops/Week)

Quantity Supplied (Millions of Scoops/Week)

 

 

 

50

180

140

60

170

150

70

160

160

80

150

170

90

140

180

100

130

190

As shown from the graph and table, the equilibrium price of ice cream is 70 pence/scoop which means that the quantity demanded and supplied would be 160 millions of scoops/week.

B] Price of Ice Cream is 90 Pence a Scoop

If the price of ice cream is increased to 90 pence/scoop, the demand of ice cream will fall from 160 to 140 which lead to increased supply. Thus we can say that the demand of ice cream is price elastic i.e. demand is responsive to price.

C] Introduction of New Ice Cream Flavor

If a new flavor of ice cream is introduced which is increasing the demand by 20 million scoops/week,

c.1: no, there will not be any movement or shift in the supply curve. However, the increase demand will act as a market force which will result in increased price and supply.

c.2: yes, the demand curve will face a positive movement. The increase in demand will be reflected on the curve.

c.3:

c.4: The new equilibrium price would be 80 while the equilibrium quantity of ice creams would be 150.

D] Technological Change

If a new technology is introduced that make ice cream producer more productive with the result that the supply of ice cream increase by 40 million scoops a week,

d.1: yes, the supply curve will face a positive movement. The increase in supply will be reflected on the curve.

d.2: No, there will not be any movement or shift in the demand curve. However, the increase supply will act as a market force which will result in decreased price and demand.

d.3:

d.4: The new equilibrium price would be 90 while the equilibrium quantity of ice creams would be 180.

PROBLEM 2

Since Harry is in small partnership with Tina, there should be some trust between them. Harry should not confess for Bank of England heist because if he confesses, he will get a sentence.

Laws are fundamental means of protection and ownership for everyone within society. They enforce fair and equal treatment of all citizens in society. The goal of the law is to ensure that there is fairness to all and justice. Justice is only achieved through equal treatment to every member in society and that is why there are strict laws with the punishment for each crime being the same. If punishments varied for two murderers who commit the exact same form of murder then one of them would be done an injustice - something which is unacceptable in society. The law must treat every group and every individual equally to maintain order in society.

As well as maintaining order, the law and the equivalent punishments for breaking it have many purposes. For a start, the main purpose of the law is the remove the dangerous person - the criminal - from society. Removing the offender not only ensures the safety of individuals in society, but it, in a sense, "teaches the offender a ...