Graph and explain: If you do not know how to use the computer to do this, do it by hand then scan it and send it by e-mail. You can use any software package you like. For instance, you can do it in Word, Excel, PowerPoint, etc. just use the drawing toolbar that you can find under Insert on the Menu Bar.
Helpful hints:
First draw and demand and supply curve label the axis’s, the curves and the graph itself
Second, just shift one curve (either supply or demand). With substitute and complimentary goods two graphs may be required
Third, give a reason for the shift as stated in the book or my notes (PowerPoint).
Fourth, these are theoretical questions. There is no research on quantities or prices required.
1. It is January 2015 and the gas price is dropping dramatically. I just saw is at Costco for $1.45. Explain how and why this is happening using supply and demand curves. Is there a movement or a shift, why? Graph and explain the relationship.