|Economic growth is expected to improve in the next two quarters.||Aluminum|
|Fire at an oil refinery in the Gulf will not be fixed for a month.||Gasoline|
|The Japanese government has decided to subsidize its domestic automobile producers with stimulus money.||Automobiles|
|Manufacturers who use plastic as an input have access to cheaper plastic.||Manufactured goods that use plastic as an input|
Using the table, for each line item, write a paragraph describing how the market for each specific product will be affected by the associated event. Describe which curve will shift (demand or supply or both), what effect it will have on price (rise or fall in price), and what will happen to quantity (rise or fall in quantity). Each line item requires a paragraph.
|Grading Criteria Assignments||Maximum Points|
|Meets or exceeds established assignment criteria||40|
|Demonstrates an understanding of lesson concepts||20|
|Clearly presents well-reasoned ideas and concepts||30|
|Uses proper mechanics, punctuation, sentence structure, and spelling||10|
Week 2 Assignment Example
Posted on: Tuesday, October 3, 2017 9:16:09 PM CDT
ECN 201 Week 2 Supply and Demand Analysis Assignment: Example.
The price of hamburgers has risen; the demand curve (demand) for hot dogs has shifted to the right.
Hot Dog Buns
Below is an A+ answer (with page references) to the Hot Dog Bun question. Please use this format for the four questions in this assignment.
First, a price change is the market response to changing market conditions. When these conditions change, they will cause a shift to the left or right of a specific demand curve=a specific demand schedule=demand. These conditions that cause a shift in demand are the six conditions described on pages 47-50 (and repeated in the Thumbnail Sketch at the top of page 51) in your book.
Or, they will cause a shift to the right or left of s specific supply curve=a specific supply schedule=supply. These conditions that cause a shift in supply are the four conditions described on pages 56-57 (and repeated in the Thumbnail Sketch at the top of page 57) in your book.
Here is the A+ answer to the above question:
The market is Hot Dog Buns.
Begin your analysis by drawing a supply and demand diagram similar to the one in Exhibit 11 on page 60 in your book (do not include the consumer and producer surplus in your diagram). This will allow you to shift the correct curve as shown in your book.
- The price of hamburgers increases and since hot dogs are a substitute for hamburgers, the demand curve (demand) for hot dogs increases (shifts to the right.
- Since hot dog buns are a complement to hot dogs, this causes the demand curve (demand) for hot dog buns to increase (shift to the right).
- This shift will result in a new equilibrium price and quantity for hot dog buns: the price will increase and the quantity demanded and supplied will increase.
Grading Rubric for Week 2 Written Assignment
Note: Words are critical when describing supply and demand analysis. My grading rubric is below:
- Which curve shifts? Demand or supply? (10 points)
- In which direction. Left or right? (5 points)
- What happens to equilibrium price? Increase or decrease? (5 points)
- What happens to equilibrium quantity? Increase or decrease? (5points)
Both curves NEVER shift at the same time due to a change in an economic factor. They are independent of each other. These factors are on page 51 for shifts in demand and on page 57 for shifts in supply in your book.