Answer to Question #79102 in Microeconomics for Albert

Question

b. Imagine that the demand for Bangladesh’s Cricket Team’s Jersey has increased due to an upcoming Cricket match. At the same time, there is a workers’ strike going on at the Chittagong seaport and Jersey manufacturers have very little supply of the raw material needed to make these Jersey. Draw a demand-supply diagram to show what happens in the market for Bangladeshi Jerseys. Assume they are initially at equilibrium.

Answer 1

b. Imagine that the demand for Bangladesh’s Cricket Team’s Jersey has increased due to an upcoming Cricket match. At the same time, there is a workers’ strike going on at the Chittagong seaport and Jersey manufacturers have very little supply of the raw material needed to make these Jersey.
In this case there is an increase in demand and the decrease in supply, so the equilibrium price will increase, but we can't determine the exact change in equilibrium quantity without additional information.