ECS1500 Assignment 3 Semester 1 2023 (859326 )

This document contains workings, explanations and solutions to the ECS1500 Assignment 3 Semester 1 2023. For assistance call or us on ............................................... QUESTION 1 Due to an increased advertising effort about the positive effect of activated charcoal in beauty products, consumers in South Africa are eager to buy beauty products that contain this ingredient. Explain how this will affect the market for activated charcoal. You are allowed to use a diagram to explain your answer, but you will only be allocated marks for the correct verbal explanation. QUESTION 2 The wage rate of workers in the wine industry in Country B has increased due to negotiations between the labour unions and the employers. Explain how this will affect the market for wine in Country B. Clearly indicate how the equilibrium price and equilibrium quantity of wine will change in Country B. The direction of any changes should be clearly indicated using arrows. QUESTION 3 Less strict regulation results in many more companies obtaining the right to mine coal in Mpumalanga. At the same time, alternative energy solutions result in a decrease in the demand for coal-generated electricity. Explain how the market for coal will be affected by these changes. Clearly indicate how the equilibrium price and equilibrium quantity of coal will be affected by these changes. Make use of a combination of diagrams and verbal explanation to explain your answer.