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BUS114-Introduction To Economics

tag 0 Download 2 Pages / 457 Words tag 13-01-2020

Questions:

1.Consider the situation where bitcoins experienced extensive negative media coverage that emphasized the risk of holding bitcoins and the lack of regulatory controls. Using the supply and demand model, show the effect this may have on the market price and quantity of bitcoins. Your answer should include a diagram.
 
2.Using the supply and demand model, show (and explain) what happened to the market price and quantity for bitcoins when it was announced that bitcoins would be allowed as legal tender in Japan. Your answer should include a diagram.
 
3.If the computing power required for mining bitcoins was reduced at the same time that Japan made the announcement in Question 2, explain what effect this would have on the market price and quantity. Your answer should include a diagram.
 
 
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