Question

Frozen Market Assignment In the Disney movie Frozen, the Kingdom of Arendelle changes overnight from a warm, flower filled place to being completely frozen (the story takes place in July). Just after this change in weather, the is a scene where two characters visit a trading post. At the trading post one character (Kristoff) is looking to buy winter transportation equipment and eventually sell some ice. The other character (Anna) is looking to buy some winter clothes. A link to the scene can be found in the module. For this assignment, please show how this change in weather would likely effect the markets for winte transportation equipment, winter clothes, and ice (assume the ice would be used by people who want to cool drinks). Specifically, draw a new supply or demand curve for the products and identify new equilibrium quantity or supply if you think the change in weather would have an impact on any of those measurements. Grading: The assignment is 10 points. Eoch graph is worth three points. The last question is worth one point. Winter Transportation Equipment Market (the rope and pick) Normal Summer Equilibrium Price Normal Summer Equilibrium Quantity Quantity

Answer 1

B ER ) Winter Transportation Equipment. 기 धि As the Kingdom gets frozen, the demand for Transportation Price equipments will coo increase leading to increase in equilibrine 1 price and equilibrium Quantity. a Winter The demand for winter clothes market mill also increase and this leads to increase in equilibre price and Quantity 15 clothes market Priced Quantity Markets Ice a aj People will exchange ice for other things, this will increase brice supply of ice reducing price and increasing supply of ice market! w