Question

Consider a market for Ice Cream an inferior good in Pakistan. For each of the given events, indicate the direction of the shift of supply or demand and show its effects on price and quantity sold. (Hint: Graph is not needed. You can draw graphs in your notebooks for your own understanding.)
There has been a decline in wages of all employees in Pakistan due to the third wave of coronavirus. (1 Mark)​

Answer 1

Answer:

Consider a market for Ice Cream an inferior good in Pakistan. For each of the given events, indicate the direction of the shift of supply or demand and show its effects on price and quantity sold. (Hint: Graph is not needed. You can draw graphs in your notebooks for your own understanding.)

News reports claim that the consumption of Ice Cream is good for the health of coronavirus patients. (1 Mark)

There has been a decline in wages of all employees in Pakistan due to the third wave of coronavirus. (1 Mark)

People in Pakistan decide to have more children. (1 Mark)

Students of NED University develop new automated machinery for the production of Ice Cream. (1 Mark)

There has been a decrease in people’s income due to COVID-19 crisis.