This Assignment must be submitted on Blackboard (WORD format only) via the allocated folder. Email submission will not be accepted. You are advised to make your work clear and well-presented; marks may be reduced for poor presentation. This includes filling your information on the cover page. Assignment will be evaluated through BB Safe Assign tool. Late submission will result in ZERO marks being awarded. The work should be your own, copying from students or other resources will result in ZERO marks. Use Times New Roman font 12 for all your answers. Last Date of submission = 16/02/2019 Assignment Questions Q.1. We knows that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? Can you show this graphically? (1.5 Marks) Q.2. Suppose, as an economist, you are asked to analyze an issue unlike anything you have ever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situation? (1.5 Marks) Answer:-

Question One

Demand is the number of some product a client is willing and able to purchase at every price; however, an expected increase in rate is likely to affect demand (Soderbery, 2015). In case a consumer believe that the costs of a commodity will be rising in the future, then they will have to purchase the product now when the prices are still low. This will also lead to a decrease in demand for that particular commodity as buyers will prefer acquiring the good while the rates are still low. The demand curve or a supply curve is an affiliation between two and only two, variables: quantity on the horizontal axis and price on the vertical axis.

Question Two

According to Self, S. (2012), economists view the universe through various lenses than anthropologists, classicists, biologists or even practitioners on any other discipline. These individuals evaluate issues and challenges with economic theories that are centered on a given assumption regarding human behavior. Economists typically carry a set of methods in their minds like a carpenter walks around with a toolkit where in case of any economic problem; they review the arguments and pick on the one that strategically fits. Therefore, as an economist, I will use a graph of the approach to assisting in coming up with an adequate answer.

References

Self, S. (2012). Studying absenteeism in principles of macroeconomics: Do attendance policies make a difference?. The Journal of Economic Education, 43(3), 223-234.

Soderbery, A. (2015). Estimating import supply and demand elasticities: Analysis and implications. Journal of International Economics, 96(1), 1-17.