ECS1501 Assignment
5 2024 (654552) -
DUE 22 July 2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
, ECS1501 Assignment 5 2024 (654552) - DUE 22 July 2024
Question 1 (12 marks)
Maximum word count: 100 words Giant, the world’s leading brand of high-quality bicycles and
cycling gear, announced that their pre-tax profit has decreased by almost 50% while their sales
were down by approximately 16%. Watch the following excerpt from The Wild Ones Podcast
Ep.41produced by Cade Media (attached below) and answer the following questions.
(i) Which of the presenters best describes the market condition that Giant Bicycles faces and
explain why you agree with him or her?
(ii) Draw a diagram of the bicycle market that illustrates the market conditions discussed in the
podcast.
(iii) Explain the adjustment process to the new equilibrium position in the bicycle market.
Question 2 (5 marks)
No words allowed, only a diagram with annotations To answer this question only a diagram with
annotations is required. Suppose beer and peanuts are complements. In anticipation of warm
weather conditions, Injabulo Breweries, the brewers of Number One beer, increased the
production of Number One beer. Show on a diagram how this will affect the market for peanuts.
Indicate how the equilibrium price and equilibrium quantity of peanuts will change. The
direction of any changes should be indicated using arrows.
Question 3 (13 marks)
5 2024 (654552) -
DUE 22 July 2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
, ECS1501 Assignment 5 2024 (654552) - DUE 22 July 2024
Question 1 (12 marks)
Maximum word count: 100 words Giant, the world’s leading brand of high-quality bicycles and
cycling gear, announced that their pre-tax profit has decreased by almost 50% while their sales
were down by approximately 16%. Watch the following excerpt from The Wild Ones Podcast
Ep.41produced by Cade Media (attached below) and answer the following questions.
(i) Which of the presenters best describes the market condition that Giant Bicycles faces and
explain why you agree with him or her?
(ii) Draw a diagram of the bicycle market that illustrates the market conditions discussed in the
podcast.
(iii) Explain the adjustment process to the new equilibrium position in the bicycle market.
Question 2 (5 marks)
No words allowed, only a diagram with annotations To answer this question only a diagram with
annotations is required. Suppose beer and peanuts are complements. In anticipation of warm
weather conditions, Injabulo Breweries, the brewers of Number One beer, increased the
production of Number One beer. Show on a diagram how this will affect the market for peanuts.
Indicate how the equilibrium price and equilibrium quantity of peanuts will change. The
direction of any changes should be indicated using arrows.
Question 3 (13 marks)
