1. Illustrate each of the following events using a demand andsupply diagram for

Question

1. Illustrate each of the following events using a demand andsupply diagram for bananas. a. Reports surface that imported bananas are infected wit adeadly virus. b. Consumers' income drop c. The price of banans rises. d. The price of oranges falls. e. Consumers expect the price of banans to decrease in thefuture. 2. Why don't we observe barter systems as often as we observethe use of currency? 1. Illustrate each of the following events using a demand andsupply diagram for bananas. a. Reports surface that imported bananas are infected wit adeadly virus. b. Consumers' income drop c. The price of banans rises. d. The price of oranges falls. e. Consumers expect the price of banans to decrease in thefuture. 2. Why don't we observe barter systems as often as we observethe use of currency?

Explanation / Answer

1. a. Demand curve shifts leftward. b. Demand curve shifts leftward. c. Supply curve shifts leftward. d. Demand curve shifts leftward, assuming oranges are a substitutegood for bananas. e. Demand curve shifts leftward. 2. Barter systems have the problem of requiring two individuals tomutually need each other's goods, i.e., if you have 10 bananas andthe person you wish to barter with has 10 oranges, you have to wantoranges and he has to want bananas in order for trade to occur.However, with currency, you could sell your bananas to a person whowants them without having to want oranges or any other good inreturn; he can just give you money.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.