THE UNIVERSITY OF THE WEST INDIES
Faculty of Social Sciences
DEPARTMENT OF ECONOMICS
ECON 1001 - INTRODUCTION TO MICROECONOMICS
(Semester I 2021/2022)
TUTORIAL ASSIGNMENT #2 (Units 4 and 5)
1. a) Using appropriate demand and supply diagrams explain the impact on equilibrium price
and quantity of local agricultural produce when restaurants and food suppliers were closed
due to COVID 19 restrictions.
2. Consider the following: Trinidad and Tobago is a net exporter of Oil, while St. Lucia and
St. Kitts and Nevis (as members of the Organization of Eastern Caribbean States- OECS)
are net importers of Oil. The OECS on the other hand are Tourism-Intensive economies,
but depend on oil as an input and a source of energy for the provision of services in the
Tourism sector.
a) Based on the above, explain with the aid of an appropriate diagram how an increase in
the price of Oil would affect the market price and quantity traded of Tourism services
in the OECS.
b) Explain with the use of appropriate diagrams (two separated diagrams) explain how
the Covid 19 Pandemic would have affected the Energy sector in Trinidad and Tobago,
and the Tourism Sector in the OECS.
3. Market research has revealed the following information about the market for chocolate
bars:
The demand schedule can be represented by the equation Qd = 1600 – 300p, where Qd is
the quantity demanded for chocolate bars.
The supply schedule can be represented by the equation Qs = 1400 + 700p, where Qs is
the quantity supplied.
p is the price of chocolate bars.
Calculate the equilibrium price and quantity in the market for chocolate.
4. a) Explain using an appropriate diagram, the implications on the price and quantity of
Covid 19 vaccines had it been provided on the open market.
b) Using and appropriate diagram justify the use of either a price ceiling or price floor
for Covid 19 vaccines.
Department of Economics
September, 2021.
Tutorial Sheet #2 ECON 1001, Semester I 2021/2022 -1-
Faculty of Social Sciences
DEPARTMENT OF ECONOMICS
ECON 1001 - INTRODUCTION TO MICROECONOMICS
(Semester I 2021/2022)
TUTORIAL ASSIGNMENT #2 (Units 4 and 5)
1. a) Using appropriate demand and supply diagrams explain the impact on equilibrium price
and quantity of local agricultural produce when restaurants and food suppliers were closed
due to COVID 19 restrictions.
2. Consider the following: Trinidad and Tobago is a net exporter of Oil, while St. Lucia and
St. Kitts and Nevis (as members of the Organization of Eastern Caribbean States- OECS)
are net importers of Oil. The OECS on the other hand are Tourism-Intensive economies,
but depend on oil as an input and a source of energy for the provision of services in the
Tourism sector.
a) Based on the above, explain with the aid of an appropriate diagram how an increase in
the price of Oil would affect the market price and quantity traded of Tourism services
in the OECS.
b) Explain with the use of appropriate diagrams (two separated diagrams) explain how
the Covid 19 Pandemic would have affected the Energy sector in Trinidad and Tobago,
and the Tourism Sector in the OECS.
3. Market research has revealed the following information about the market for chocolate
bars:
The demand schedule can be represented by the equation Qd = 1600 – 300p, where Qd is
the quantity demanded for chocolate bars.
The supply schedule can be represented by the equation Qs = 1400 + 700p, where Qs is
the quantity supplied.
p is the price of chocolate bars.
Calculate the equilibrium price and quantity in the market for chocolate.
4. a) Explain using an appropriate diagram, the implications on the price and quantity of
Covid 19 vaccines had it been provided on the open market.
b) Using and appropriate diagram justify the use of either a price ceiling or price floor
for Covid 19 vaccines.
Department of Economics
September, 2021.
Tutorial Sheet #2 ECON 1001, Semester I 2021/2022 -1-
