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1.When bitcoins experience extensive negative media coverage, people feel risk to hold this digital currency. This phenomenon also highlights insufficient control of the government on the bitcoin market. As a result, people will sell this cryptocurrency in market and consequently, supply of bitcoins will increase. On the other side, demand for bitcoins will decrease further due to this negative impact (Gandal, Hamrick, Moore and Oberma...
We will employ basic Microeconomic theory of demand and supply to answer the questions in this part. On the X axis we have quantity of the commodity we are interested in, while its price is on the Y axis. The demand curve shifts downwards, and the supply curve slopes upwards. Equilibrium is at the point demand equals supply. Any event that happens will affect either of these curves. A shift in the appropriate curve will lead to a...
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Part A: Microeconomics
Equilibrium is obtained at the intersection of demand and supply curve. From the above demand and supply, schedules demand and supply matches at a price of $140 and corresponding quantity is 1600. Therefore, equilibrium price is $140 and corresponding equilibrium quantity is 1600.
b) Table 1: New demand schedule for an increased income
Price of TVs ($)
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