Compose a two page paper. Address the following subject matter in your paper:
Go online and find a product that has had a change in demand or a change in supply.
1. Firstly, what is the product?
2. Secondly, what changed? supply or demand? Explain what caused the change?
3. Thirdly, did the supply/demand curve shift to the left or to the right as a result of the change? Explain.
4.Further, did the price of the product go up or down as a result of the change? Explain.
5. Explain in detail (use the reading as a guide) as the supply/demand shifted, was there a change in quantity supplied/demanded? (hint there is only one thing that causes this).
6. Are we back in equilibrium? Can we expect to see continued shortages/surpluses? Should we expect to see continued changes in prices or has the event that caused the change in supply or demand over. Explain.
The trick to answering this question is to remember the first thing that happens is the supply or demand curve shifts to the left or right. Then there is movement along the other curve.
Example: The Surgeon General reports that Snickers candy bars are very bad for you and that eating one a day will lead to a health problems and other issues. Because of this report the demand for Snickers bars shifts to the left (will look like figure 3.17 on page 63). The producers of Snickers bars then move along their supply curve, down and to the left (the movement will be change in quantity supplied from E0 to E1). The result will be a lower equilibrium quantity and a lower equilibrium price. Please let me know if you have questions.
a. A couple of pages is right for for this assignment. If you need to go a little over or under (and it makes sense) hat is fine.
b. To submit the graph if you choose to do one to supplement your paper, if you have the technological ability to create and include a graph within your Word document feel free. If you are unsure about how to include a graph in your paper, please take a photograph of a hand created-drawn graph and upload it as a separate attachment along with your homework. This is surprisingly easy.