1 The mini case study on Venezuela discusses two opposing views of how the shortage of toilet rolls has arisen – because of excess demand or because of reduced supply. Show both of these on demand and...

1 The mini case study on Venezuela discusses two opposing views of how the shortage of toilet rolls has arisen – because of excess demand or because of reduced supply. Show both of these on demand and supply diagrams. What possible solutions are there in each case?

2 Considering the market for CDs, show the effects of the following changes using demand and supply diagrams:

 (a) an increase in the number of people owning CD players;

 (b) a fall in the cost of producing CDs;

 (c) an increase in the number of people downloading music to mobile devices.