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Supply and Demand
i) Assume there is currently a shortage in the market for oranges. As a result, shops are finding it difficult to keep them in stock. Discuss what is likely to happen in the market and the likely changes to the equilibrium price and quantity in the long run.
ii) Suppose we are analysing the market for taxis in Melbourne. What will be the impact of the following events on the equilibrium price and quantity? You are not required to draw diagrams but sketching these events may help you work out the answers.
a. winter starts and the weather turns sharply colder.
b. the price of Uber, a substitute service falls.
c. petrol prices fall
d. the cost of taxi registrations increases
e. the coronavirus leads to a fall in international travel
f. Melbourne experiences fast economic growth
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