Assignment Part 1: What do you think will happen to the current demand of product X under the following circumstances? Can you illustrate the change in the demand curve?
- More buyers in the market
- Its competitor, an absolute substitute, is on sale.
- Buyers "expect" that product X will have a huge price decrease in 2 weeks.
- Obsolescence of the product X
Assignment Part 2: What do you think will happen to the current supply of product X under the following circumstances? Can you illustrate the change in the supply curve?
- Increase in the cost of production
- Sellers "expect" that product X can be sold at a higher price during the upcoming festival.
- More sellers in the market