Applied writting

  Please read the article ‘Shoppers to pay less for cherries thanks to bumper season’ published on November 27 2017 and answer the following questions: Questions 1. Assuming cherries are sold in a perfectly competitive market; use the supply and demand diagram to describe, ceteris paribus, what it means by a ‘bumper growing season’ and its impact on equilibrium price and quantity. In your discussion make sure to explain the process of moving to the new equilibrium output and price. (5 marks) 2. Use a supply and demand diagram to explain the impact of the changes in the cherry prices on two related markets. In your discussion specify your assumptions and explain the equilibrating process in the related market in terms of the new equilibrium output and price. (7 marks) 3. (a) Using the determinants of price elasticity of demand, discuss whether you think the price elasticity of demand for cherries are to be inelastic or elastic? (4 marks) (b) Based on your discussion of elasticity, Illustrate and analyse the effect on total consumer expenditure in the cherry market following the price falls. (6 marks) Your assignment will also be assessed on how effectively you can communicate with the reader; i.e. how well you have presented your arguments and ensured your analysis is logical and consistent. Consequently, 3 marks will be awarded for effective writing including proper grammar, referencing and formatting. Importantly, make sure you use appropriate diagrams in your analysis. Please check the FAQs for Assignment 2 if you have further questions on this assignment.