Problem
Some of the outcomes of the basic demand and supply model might be considered quite obvious, and you might have been able to easily state them without using the model. Discuss the potential advantages (or disadvantages) of using the demand and supply model, compared to discussing the markets without using the model.
• Suggest a real-world market that you think is a good example to apply the demand and supply model to, and explain your reasoning.
• Apply the demand and supply model to a real world case study, describing what changes on the demand or supply side in a particular market have led to changing price and quantity outcomes.
• Are there any aspects of the demand and supply model, such as assumptions, that really 'bother' you or you find difficult to accept? How problematic are these for the model? Is there still use in the model? How might this impact the contexts that the model is applicable?
• Many markets have been impacted in various different ways by the pandemic from 2020 until now, can you comment on any of those with respect to the demand and supply model?