Ex.18. With your group mates do the following.

Date: 2015-10-07; view: 577.

DISCUSSION POINTS

Ex.16. Using your plan as a base write a brief summary (25-30 sentences) of the text.

Ex.15. Make up a plan for a summary of text A.

WRITING

Ex.14. Make a presentation of the topic.

Ex.17. Using the information from the text, write an essay on one of the following topics:

a) An increase in demand raises the price of a particular good. An increase in price cuts demand for that good.

b) How does a rational consumer allocate a fixed income between the purchase of two commodities? Would the consumer always use an increase in income to buy more of both goods?

1. Analyze the effect, in the short run only, on the price of coffee of (i) a severe frost; (ii) a fall in the rate of VAT; (iii) the introduction of rationing.

· You are not expected to have a detailed knowledge of the coffee industry.

· Apply your understanding of general supply and demand analysis.

· Make assumptions about the price elasticity of supply and demand for coffee and then draw flat or steep curves to match.

2. Explain why the prices of some commodities fluctuate more than those of others.

· Explain why unstable conditions of supply and demand result in price changes.

· Explain why price inelasticity amplifies the effect on price of changes in supply and demand.

· Make use of graphs and relevant examples.