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Topic: Supply & Demand
Find an article in a recent newspaper or magazine illustrating a change in price or quantity in some market. Analyze the situation using economic reasoning.
Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, and changes in the number of consumers in the market.
Has there been an increase or decrease in supply? Factors that could shift the supply curve include changes in cost of materials, wages, or other inputs, changes in technology, and changes in the number of firms in the market.
Draw a supply and demand graph to explain this change. Be sure to label your graph and clearly indicate which curve shift.
Requires: 1 page long and the article.
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