Reference no: EM1391124
Demand - The factors that can shift demand and the impact of an increase or decrease in demand on equilibrium price (Pe) and equilibrium quantity (Qe).
Supply - The factors that can shift supply and the impact of an increase or decrease in supply on equilibrium price (Pe) and equilibrium quantity (Qe).
Explain as completely as you can what an economist means by demand (supply). What is meant by a change in demand and change in qty demanded?
Identify ALL the factors that can shift a demand (supply) curve (those in the text and in the presentations). Explain briefly how each factor impacts the respective curve you have chosen. (could be several paragraphs)
Explain what happens to Pe and Qe when demand (supply) increases and when demand (supply) falls.
Select an article FIRST PUBLISHED THIS QUARTER that represents a situation where there is or you anticipate a shift in demand or supply for some product or service. You must attach a copy of the article or provide a link if it is online. Without it, your paper cannot be graded. Your article must be something published this quarter. Use any publication you like. Business publications are fine, but so are Sports Illustrated, Newsweek, your neighborhood Booster. You can find economic issues in all kinds of magazines and newspapers.
Briefly explain the situation. EXPLAIN how the article illustrates the concept you are discussing. Your task is to demonstrate a working knowledge of economics, NOT to simply summarize an article. Play the role of the econ professor who's constructing an example to illustrate a concept in class.
Spend most of your time relating the article's events to at least 1 of the determinants of demand (supply) you explained on page 1. Be very explicit in identifying the determinant responsible for the curve shift and in explaining why the curve will move as you predict. Do you see demand or supply rising or falling? As an economist, what impact do you predict this change will have on Pe and Qe?
Graph. Construct a properly labeled graph of supply AND demand for the market discussed in your article. Label the initial demand (supply) curve D0 (S0) and the initial equilibrium price and equilibrium quantity Pe0 and Qe0, respectively.
Now, staying on the same graph, if your topic is demand draw in the new demand curve and label it D1. Leave the supply curve alone. Find and label the new equilibrium values Pe1 and Qe1. If you've chosen to write about supply, draw in the new supply curve (label it S1) to show the increase or decrease in supply. In this case, let the demand curve stay put. Label the new equilibrium values Pe1 and Qe1.
Don't worry if you don' t have numbers to put on your graph; relative changes in Pe and Qe will suffice.
Make sure your graph has all curves and axes labeled; the equilibria price and quantity identified on the appropriate axes; what units are being used to measure price and quantity; as well as what market or good is being depicted.
Finally a title on the graph is necessary. the title should include the market and description of what is occurring in the graph below.