Supply and Demand

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https://www.marketplace.org/2015/06/12/business/profitable-airlines-face-grumpy-investors
This assignment will likely be the most challenging of the semester, so give yourself a lot of time.
You will choose one of the attached news article on an event which shifts the supply or demand curve (or you can one of your own); then draw and explain

the reason for the shift.
Detailed Instructions:
1. Look over the articles at the end of these instructions and choose one to use. If they are all taken or none interests you, you can find your own

by going to www.marketplace.org and finding an article about a consumer product and something that has occurred to cause a change in the price or

quantity.
2. Post a “reserve” under your Assignment Group so that no one will use the article you have chosen. You cannot use an article someone has already

reserved or written about.
3. Write a paragraph describing the situation, and provide the link.
4. Draw a supply/demand graph of the product. It must be hand drawn on graph paper and done very neatly with a straightedge (neatness will be part of

the grade). Take a picture of it and post. You don’t need exact prices or quantities; you can use the letters P and Q. Include axis labels and

equilibrium points, and label all lines.
5. Decide what change or changes will occur on the graph based on the events in the article and draw the change.
6. Review the tutorial on Supply and Demand. In the tutorial it discusses “determinants” – categories of situations that can shift the demand or the

supply curve.

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7. Fill out the following sentence as a way to describe your graph:
My graph shows the market for ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬_______________. On the graph, the ___________ curve shifted to the _____________ causing the equilibrium

price to _______________ and the equilibrium quantity to _____________. The determinant that caused the shift is ______________. The information in

the article that supports this determinant is: _________________________________

 

Example:
Biking Has Taken Off in New York – May 11, 2015
3. The number of bicycle riders has increased in New York City, from under 5000 in 2000 to over 20,000 in 2015. At the same time, the per-rider

accidents have decreased. Part of the increase is from bicycle-sharing companies, which offers discounts to people in public seniors.

 

7. My graph shows the market for ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬bicycles. On the graph, the supply curve shifted to the right causing the equilibrium price to decrease

and the equilibrium quantity to increase. The determinant that caused the shift is number of firms in the market. The information in the article that

supports this determinant is: the article talked about a new service, CitiBike that was offering bicycles at a lower price for rent, so the number of

firms has increased.
(Note that your own graph will be drawn by hand)

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