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100 Word Discussion

09/10/2020 Client: user_3wd25t Deadline: 10 Days

 



  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." (I recommend you avoid articles about the stock market.) 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 discussed in Module 2 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.  

  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. 

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