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Ecs1500 Assignment 3

The assignment discusses the impact of decreasing tablet prices on the smartphone market, leading to a leftward shift in the smartphone supply curve and higher prices. It also examines how a technological advancement in agriculture affects the wheat market, with both supply and demand curves shifting rightward, influencing equilibrium prices based on their relative magnitudes. The document includes an academic integrity declaration affirming the originality of the work.

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mbalenhlekhumalo118
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356 views5 pages

Ecs1500 Assignment 3

The assignment discusses the impact of decreasing tablet prices on the smartphone market, leading to a leftward shift in the smartphone supply curve and higher prices. It also examines how a technological advancement in agriculture affects the wheat market, with both supply and demand curves shifting rightward, influencing equilibrium prices based on their relative magnitudes. The document includes an academic integrity declaration affirming the originality of the work.

Uploaded by

mbalenhlekhumalo118
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ECS1500 Assignment 03 2025

Student number: 58454543

Name: NTOKOZO HADEBE

Date submitted: 20 February 2025

Word count:261

QUESTION 1

When tablet prices decrease, it impacts the smartphone market as they are substitutes in
production. Producers may allocate more resources to tablets, reducing smartphone
supply. This causes the smartphone supply curve to shift left, leading to a higher equilibrium
price and lower quantity. Additionally, cheaper tablets might attract consumers, reducing
smartphone demand. The combined effect of decreased supply and demand results in a
new equilibrium with potentially higher prices and lower quantities for smartphones.

Number of words used : 74


QUESTION 2
QUESTION 3

When a major technological advancement in agriculture significantly lowers the cost of


producing wheat, the supply of wheat increases as producers can now produce more at a
lower cost. This shift is represented by a rightward shift of the supply curve. Simultaneously,
a new health trend encourages more people to consume wheat-based products, leading to
an increase in demand. This is shown by a rightward shift of the demand curve. In the wheat
market, both the supply and demand curves shift to the right. The increase in supply tends
to lower the equilibrium price, while the increase in demand tends to raise it. However, since
both supply and demand increase, the overall effect on the equilibrium price depends on the
relative magnitudes of these shifts. If the supply increase is larger than the demand increase,
the equilibrium price may decrease. Conversely, if the demand increase is larger, the
equilibrium price may rise. Regardless of the price change, the equilibrium quantity of wheat
will definitely increase due to both curves shifting rightward. This results in a higher quantity
of wheat being bought and sold in the market.

Number of words used :187


ACADEMIC INTEGRITY DECLARATION

1. I understand what academic dishonesty entails and am aware of UNISA’s policies in


this regard.
2. I declare that this assignment is my own, original work. Where I have used someone
else’s work I have indicated this by using the prescribed style of referencing. Every
contribution to, and quotation in, this assignment from the work or works of other
people has been referenced according to this style.
3. I have not allowed, and will not allow, anyone to copy my work with the intention of
passing it off as his or her own work.
4. I did not make use of another student’s work and submitted it as my own.

NAME: NTOKOZO HADEBE

STUDENT NUMBER: 58454543

MODULE CODE: ECS1500

SIGNATURE/ID NUMBER:

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