The market for a brand of yellow maize is in equilibrium. Explain, with the aid of a separate diagram in each case, the effects which each of the following is most likely to have on the equilibrium position:a) Due to the serious drought, there is a reduction in the aggregate harvest.b) A fall in the price of fertiliser, a key input in the production of the yellow maize.c) The price of beef has gone up tremendously and yellow maize is a key feed for beef animals.

At equilibrium point demand and supply curve are equal at certain price level and output .

Answered: The market for a brand of yellow maize…

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 8WNG

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The market for a brand of yellow maize is in equilibrium. Explain, with the aid of a separate diagram in each case, the effects which each of the following is most likely to have on the equilibrium position:

a) Due to the serious drought, there is a reduction in the aggregate harvest.
b) A fall in the price of fertiliser, a key input in the production of the yellow maize.

c) The price of beef has gone up tremendously and yellow maize is a key feed for beef animals.

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