You are the manager at McDonalds. Using clearly labelled Demand and Supply model of Big Mac, illustrate the initial impact on market equilibrium, changes in Big Mac’s demand and / or supply, due to following events : a. An increase in the wage rate of Big Mac makers and kitchen staff. ( 1.5 Marks )
b. With lockdown imposed in the city you decide to offer competitive deals and promotions on meals ordered from homes . ( 1.5 Marks )
Graphically compare the original equilibrium point with new equilibrium point and interpret, in your own words, the resulting change in equilibrium price and equilibrium quantity for each of the above events.

Indicate on the graph the direction of change, whether ‘Movement along the Demand or Supply curve’ and/or ‘Shift of Demand or Supply curve’ and note the Price change and/or Quantity change , whether Increase or Decrease.

The new york times (nov. 30, 1993) reported that “the inability of opec to agree last week to cut production has sent the oil market into turmoil . . [leading to] the lowest price for domestic crude oil since june 1990.” why were the members of opec trying to agree to cut production? so they could save more oil for future consumption so they could lower the price so they could raise the price why do you suppose opec was unable to agree on cutting production? because each country has a different production capacity because each country experiences different production costs because each country has an incentive to cheat on any agreement the newspaper also noted opec’s view “that producing nations outside the organization, like norway and britain, should do their share and cut production.” what does the phrase “do their share” suggest about opec’s desired relationship with norway and britain? opec would like norway and britain to keep their production levels high. opec would like norway and britain to act competitively. opec would like norway and britain to join the cartel.