Application of Demand and Supply Discussion
Description
In chapter 4 of the textbook, we study the market forces of supply and demand. We also learn the determinants of demand: Price and Non-Price Determinants. Please choose one of the articles from the list below illustrating a change in price or quantity in some markets and discuss the following questions.
You can choose ONE of the articles below to complete your discussion assignment:
Article: Dry weather has decreased Ghanas cocoa production by 22% from last year
Article: Hyundais car sales are affected by lower gas prices
Article: New cage laws for chickens decrease the number of chickens
A. What changed? (You may answer “no” some of the following questions)
Identify the market or the good/service you are analyzing the determinants of demand and supply.
Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, or changes in the number of consumers in the market.
Has there been an increase or decrease in supply? Factors that could shift the supply curve include changes in costs of materials, wages, or other inputs; changes in technology; or changes in the number of firms in the market.
Has there been a movement along the demand curve? The price of the good itself is the only factor that could make a movement along the curve.
Has there been a movement along the supply curve? The price of the good itself is the only factor that could make a movement along the curve.
B. Which curve shifts?
C. What happens to the equilibrium price and quantity?
Responses: Finally, respond to at least two of your peers whose article is different from yours. Do you think your peer correctly identifies all determinants of demand and/or supply? If yes, evaluate your peer’s elaboration on changes in equilibrium quantity and price. If no, which determinant your peer misses to include in her/his initial post?
NOTE: The following video of me illustrates the “Hot Chocolate market” and it may be helpful to understand the differences between shifting and moving along the curves (Watching video is optional!)
Watch Video: Hot Chocolate Market
Tags:
markets
demand and supply
Quantity
User generated content is uploaded by users for the purposes of learning and should be used following FENTYESSAYS.COM ESSAY’s honor code & terms of service.
