Assignment - Supply and Demand
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 drawing and explaining the reason for the shift.
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 (and earn 1 extra credit point for doing so), by going to www.marketplace.org(or any other non-normative news site) and finding an article about a consumer product, and something that has caused (or will 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.
3. Write a paragraph describing the situation, and provide the link.
4. Draw a supply/demand graph of the product. It must be created by you, not lifted off of the internet of copied from another student. It's OK to hand draw and send a photo or scan, or draw using a computer program (Myeconlab has one that is easy to use). You don't need exact prices or quantities; you can use the letters P and Q.
5. Decide what change or changes will occur on the graph based on the events in the article. Be sure to label all the lines and show both the old and new equilibrium points.
6. Look in your book on page 72 and on page 80. There it describes categories (also called determinants) of things that can shift the demand or the supply curve. Specify which category is the relevant one for your article.
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 category (determinant) that caused the shift is ______________. I chose this category because _________________________________NOTE: I want to know what in the article supported the category here - I don't want to know wny you were interested in the topic.
Example:
Biking Has Taken Off in New York - May 11, 2015 https://www.marketplace.org/topics/sustainability/biking-has-taken-new-york
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.
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 category that caused the shift is number of firms in the market. I chose this category because the article talked about a new service, CitiBike that was offering bicycles at a lower price for rent