Discussion:
Apply graphs and tables to illustrate the market equilibrium for a product
You have learned about demand, supply, elasticity, and the factors that affect demand and supply. You will now apply this learning to create a demand and supply graph and analyze its determinants.
Select any one of your favorite products, for instance, food that you like, a video game that you play, or a gadget that you use. The product should be a private, and not a public, good.
Then, do the following:
Create a demand schedule and a supply schedule for your product.
Using these schedules, draw a demand curve and a supply curve using PowerPoint or Excel. Use these to determine the equilibrium price and equilibrium quantity for the product.
Analyze five reasons why demand for this product could shift.
Analyze five reasons why supply could shift.
Analyze the conditions that could lead to the following scenarios: a) Demand increases, supply decreases; b) Demand decreases, supply increases; c) Demand and supply both increase; d) Demand and supply both decrease.
Then, create separate graphs for this product to illustrate how equilibrium price and quantity change in the four scenarios mentioned above.