Vallestero Denmark F.

11/23/2020
ENR 21 Microeconomics

Basic Micro_ENR
Practice assessment_Demand_Supply_Market Equilibrium Applications (Part 1)
Instructions: Type written (font 12 New Roman). No handwritten or screenshot answers.
Copying from someone or simply “copy and paste” from a source is a violation.
1. Explain (using graph) why a change in the price of fertilizer causes a shift in the supply
curve for avocados rather than a movement along the supply curve for avocados.
Vallestero Denmark F. 11/23/2020
ENR 21 Microeconomics

2. Some government policies—such as restrictions on who can buy a product—cause a shift

in the supply or demand curves, thereby altering the equilibrium. Other government
policies, such as price controls, can cause the quantity supplied to be greater or less than
the quantity demanded, leading to persistent excesses or shortages. Use graphs and a
typical example in the Philippines to explain this situation.

“FDA sets price ceiling for selling essential medicines, supplies online”
Last March 12, 2020

Price Floor for Ethyl Alcohol 70% solution

Vallestero Denmark F. 11/23/2020
ENR 21 Microeconomics

Price Ceiling for Disposable Face Mask