solution

The National Democratic Congress (NDC) is a social democratic political party in Ghana, founded by Jerry Rawlings who was Head of State of Ghana from 1981 to 1993 and the President of Ghana from 1993 to 2001. Following the formation of the Provisional National Defence Council (PNDC) which ruled Ghana following the military coup d’état on 31 December 1981, there was pressure from the international community to restore democracy. The NDC was formed as the ruling party ahead of elections in 1992, in which Rawlings was elected president. Rawlings was re-elected in 1996 and his second term ended in 2001. The NDC lost the presidency in the 2000 elections, and it was not until the 2008 that they regained it with Prof. John Attah Mills. John Mahama on the ticket of the NDC was re-elected in 2012 but lost the presidency in the 2016 elections. The NDC over the last weekend held it national delegates congress dubbed “Bobolibobo” congress where NDC paraphernalia of all shapes, kinds and sizes were massively patronized. Suppose the producers of these paraphernalia enjoyed economies of scale in their production. Explain with the aid of a diagram, the effect of these events on the equilibrium price and quantity of NDC paraphernalia assuming the producers’ enjoyment of economies of scale has a greater impact.