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ECON 1001 Tutorial Sheet 2 Semester I 2020-2021

This document contains a tutorial assignment for an Introduction to Microeconomics course. It includes 4 questions analyzing markets during the COVID-19 pandemic. Question 1 asks students to illustrate using diagrams how the pandemic affected markets for toilet paper and substitutes for non-essential goods. Question 2 asks how an oil price increase would impact tourism services in oil importing countries and how the pandemic affected oil and tourism sectors. Question 3 provides demand and supply equations to calculate the equilibrium price and quantity of chocolate bars. Question 4 asks students to explain the effects of price ceilings and floors using diagrams.

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162 views

ECON 1001 Tutorial Sheet 2 Semester I 2020-2021

This document contains a tutorial assignment for an Introduction to Microeconomics course. It includes 4 questions analyzing markets during the COVID-19 pandemic. Question 1 asks students to illustrate using diagrams how the pandemic affected markets for toilet paper and substitutes for non-essential goods. Question 2 asks how an oil price increase would impact tourism services in oil importing countries and how the pandemic affected oil and tourism sectors. Question 3 provides demand and supply equations to calculate the equilibrium price and quantity of chocolate bars. Question 4 asks students to explain the effects of price ceilings and floors using diagrams.

Uploaded by

Ismadth2918388
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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THE UNIVERSITY OF THE WEST INDIES

Faculty of Social Sciences


DEPARTMENT OF ECONOMICS

ECON 1001 - INTRODUCTION TO MICROECONOMICS

(Semester I 2020/2021)

TUTORIAL ASSIGNMENT #2 (Units 4 and 5)

1. a) Using appropriate diagrams with demand and supply curves, illustrate what would have
happened to the market price and quantity of toilet paper and other grocery items with the
on set of the Covid 19 Pandemic.

b) Given the closure of businesses that were not deemed as “essential” explain with the use
of examples and appropriate diagrams, the impact on the market price and quantities of
available substitutes of non-essential goods and services
.

2. Consider the following: Trinidad and Tobago is a net exporter of Oil, while St. Lucia and
St. Kitts and Nevis (as members of the Organization of Eastern Caribbean States- OECS)
are net importers of Oil. The OECS on the other hand are Tourism-Intensive economies,
but depend on oil as an input and a source of energy for the provision of services in the
Tourism sector.

a) Based on the above, explain with the aid of an appropriate diagram how an increase in
the price of Oil would affect the market price and quantity traded of Tourism services
in the OECS.

b) Explain with the use of appropriate diagrams (two separated diagrams) explain how
the Covid 19 Pandemic would have affected the Energy sector in Trinidad and Tobago,
and the Tourism Sector in the OECS.

3. Market research has revealed the following information about the market for chocolate
bars:

The demand schedule can be represented by the equation Qd = 1600 – 300p, where Qd is
the quantity demanded for chocolate bars.

The supply schedule can be represented by the equation Qs = 1400 + 700p, where Qs is
the quantity supplied.

p is the price of chocolate bars.

a) Calculate the equilibrium price and quantity in the market for chocolate.

Tutorial Sheet #2 ECON 1001, Semester I 2020/2021 -1-


4. Explain using appropriate diagrams the effects of price ceilings and price floors.

Department of Economics
September, 2020.

Tutorial Sheet #2 ECON 1001, Semester I 2020/2021 -2-

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