Reference no: EM132367289

Search the Internet using a search engine (such as Google) for a recent article that discusses a change in the price of something. For example, search "price increase," "price rise," "price drop," or "price decrease." It is recommended that you avoid articles about the stock market.

Determine the cause of the price change by reading the article. Then, try to identify which of the theoretical demand or supply shifters is the cause of the price change. Also, state whether demand or supply, or both, shift to the right or to the left. The article should suggest the cause, such as increased popularity, higher costs of production, or something similar, and you should try to figure out if that represents an increase (shift to the right) or decrease (shift to the left) of the demand or supply curves. It is important the article chosen allows the identification for one or more supply or demand shifters.

After you have stated which diagram best describes the situation in your article, what should happen to the equilibrium price and equilibrium quantity in the graph. These are the theoretical model predictions (for example, you may find that equilibrium price should increase, while equilibrium quantity should decrease by looking at the graph). Conclude whether the theoretical predictions match any findings/statements in the article.

What was the URL address of your chosen article that discusses a price change? How does the supply and demand model changed from its initial equilibrium because of the events described in the article.

Describes how the supply & demand diagram (the theoretical model predictions) could explain the price change discussed in the article.