Assignment chapter 2

Part1:
1- "Change in demand" refers to shi�s in the overall demand curve caused
by factors such as changes in income, consumer preferences, prices of
related goods, or popula�on. This means that consumers are now willing
and able to buy varying quan��es of products at each price level. On the
other hand, a "change in quan�ty demanded" refers to a shi� along the
demand curve caused solely by a change in the price of a product. This
means that consumers are s�ll willing to buy the same product but are
now willing to buy more or less of it at a different price. To sum up, the
change in quan�ty demanded refers to the movement of the en�re
demand curve due to various factors, while the change in quan�ty
demanded refers to the movement along the demand curve caused by
the price change.
2- "Supply change" refers to shi�s in the overall supply curve due to changes in
factors such as produc�on costs, technology, or the number of suppliers. It
represents changes in the willingness and ability of producers to sell a given quan�ty
.of a good or service at different price levels
On the other hand, a "change in the quan�ty supplied" refers to a shi� along the
supply curve due to a change in the price of a par�cular good or service supplied. It
expresses a change in the quan�ty of a good or service that a manufacturer is willing
.and able to supply in response to a change in price
In a nutshell, a change in quan�ty supplied refers to a shi� in the overall supply
curve due to various factors, whereas a change in quan�ty supplied refers to a shi�
along the supply curve caused by a change in the price of a par�cular good or
.service
3-The resource market refers to the market for buying and selling various resources
or produc�on factors such as labor force, land, capital, and commodi�es. In this
market, companies and individuals acquire the resources needed to produce goods
.and services
In resource markets, individuals offer their labor, land, or other resources in
exchange for wages, rent, interest, or profit. These resources are then purchased by
.companies or other en��es for use in the produc�on process
The func�oning of resource markets is cri�cal to the economy because it facilitates
the alloca�on of resources and determines prices and wages for different types of
resources. Changes in the supply and demand of market resources will affect
resource prices and affect the produc�on decisions of enterprises and individuals
.

Part2:
1-
a) If the demand at each price increases by 40 million packs of gums per
month then the new quantity demanded will be:

b) According to the below figure, the x-axis measures the quantity of gum, and the y-axis measures
the price of gum. D1 is the initial demand curve and D2 is the new demand curve. S1 is the supply
curve. The initial equilibrium is at point E1 where D1 and S1 intersect each other. The initial
equilibrium price is $0.50 and the quantity is 120 million packs. After an increase in quantity
demanded by 40 million packs at each price, the new equilibrium is at point A where D2 and S1
intersect each other. The new equilibrium price is $0.60 and the quantity is 140 million packs.