Section Assignment #1: News report
Introduction to Economics
Task: Your first assignment is to identify, describe, and draw a market shift in the real world. Search for a recent (no more than 6 months ago) news article from a reputable source that describes a change in a market.
The article should be at least 500 words. Summarize the article briefly and explain the principles behind the shift in either demand or supply. Finally, draw the new market equilibrium. Be sure to fully label your graph.
You may choose to hand draw it or use the line tools in word or PowerPoint. Cite the article in APA format, ensure a link to the article is included within the citation. Your maximum score for the assignment will be half credit if a link is not included or does not work.
Examples and links of reputable sources –
Be prepared to share what you found at the beginning of section.
Word Count: Keep the description brief. Total words should be between 150 and 300 words.
Please use this example to help guide you.
Section: T 4-5 with [Insert TA Name]
Trump taps emergency U.S. oil reserve after Harvey
In response to the devastation by Hurricane Harvey, the Energy Department will send 500,000 barrels of oil to the Philips 66 refinery in Lake Charles, Louisiana. The closure of a major pipeline due to limited supplies is hampering production capabilities of the fully operational refinery. Refineries need constant flow of oil to produce products.
Hurricane Harvey caused large disruptions to offshore oil drilling facilities throughout the Gulf of Mexico preventing the extraction of new oil. The Strategic Petroleum Reserve will release the additional oil and can be tapped during emergencies or when concerns of shortages are present.
The release of the Strategic Petroleum Reserves in the article will shift the supply of gasoline in the US. Oil is a key input into the production of gasoline. The price of oil increased with the reduction in available supply to send to refineries [TA Note: This could also be shown as a shift, I chose to focus on gasoline as the article mentions the price increase of gas].
The decision to send oil reserves to the refinery will reduce costs of oil for gasoline input, shifting the supply curve to the right. Gasoline quantity will increase and price will decrease stabilizing the gasoline market.
Egan M. and B. Klein (2017). “Trump taps emergency U.S. oil reserve after Harvey”, CNN Money, Retrieved from: http://money.cnn.com/2017/08/31/investing/strategic-oil-reserve-harvey-trump/index.html