Question 1: Choose a current business article from October or November 2014 (any country) that illustrates the market forces of demand and supply for a certain good or service i.e. find a business article that illustrates a change (shift) in demand or supply. Make sure your chosen article is about a market not one company.
Explain the change in the market and relate the article back to the demand and supply model and the theory that you have learnt in class (i.e. chapter 3 and 4). Draw the demand and supply model to illustrate your answer. Make sure that your written answer and market model clearly include the shift, effect on market price and quantity and the shortage or surplus created by the change.
Each student should make an appointment to see Brent or myself to make sure that their demand and supply model and shift are correct, we will be available to discuss your demand and supply model.
Question 2: Choose a current business article from October or November 2014 (any country) that illustrates market failure (lack of competition or negative externality). Make sure your chosen article is about a market not one company.
Explain the cause of the market failure and relate the article back to the demand and supply model and the theory that you have learnt in class. Draw the demand and supply model to illustrate your answer. Make sure that your written answer and market model clearly include the shift, effect on market price, quantity and the shortage or surplus created by the change.