(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 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.
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.
(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!
(Ask me if you want or need clarification.)
Please change the title of your response to reflect the topic of your supply & demand analysis. For example, if your article talks about a change in the price of beef, use “Beef” as your title.