(1) Search the Internet using a search engine (such as
Google) for a recent article that discusses a change in
the price of something. For example, search “price
increase,” “price rise,” “price drop,” or “price decrease.”
Copy the URL address of the web site. You
will need to post it.
(2) Determine the cause of the price change by reading
the article. Then try to identify which of the theoretical
demand or supply shifters is the cause of the price
change. Next state whether demand or supply, or
both, shift to the right or to the left. The article should
suggest the cause, such as increased popularity, higher
costs of production, or something similar, and you
should try to figure out if that represents an increase
(shift to the right) or decrease (shift to the left) of the
demand or supply curves. If the article does not
suggest a cause of the price change, then you must
find another article. It is important the article you
choose allows you to identify one or more supply or
demand shifters. Otherwise, the article will not be
suitable for this discussion thread.
choose allows you to identify one or more supply or
demand shifters. Otherwise, the article will not be
suitable for this discussion thread.
(3) After you have stated which diagram best describes
the situation in your article, write a short paragraph
stating what should happen to the equilibrium price
and equilibrium quantity in the graph. These are the
theoretical model predictions (for example, you may
find that equilibrium price should increase, while
equilibrium quantity should decrease by looking at the
graph). Last, conclude by stating whether the
theoretical predictions match any findings/statements
in the article. If this is not mentioned in the article,
state that as well.
IN ORDER TO RECEIVE FULL CREDIT FOR THIS
DISCUSSION BOARD, YOU NEED TO POST THREE
THINGS:
(1) The URL address of your chosen article that
discusses a price change.
Example:
http://www.spcnetwork.com/mii/1998/980162.htm
(2) A description of how the supply and demand model
changed from its initial equilibrium because of the
events described in the article.
(3) A paragraph that describes how the supply
demand diagram (the theoretical model predictions)
could explain the price change discussed in the article.
EACH STUDENT MUST CHOOSE A DIFFERENT TOPIC.
READ THE POSTED ARTICLES TO ENSURE YOUR TOPIC
HAS NOT ALREADY BEEN POSTED!