|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.
Right here below is an example for the assignment:
BA 201 Week 2 Supply and Demand Analysis
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
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.
the A+ answer to the above question:
The market is Hot
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
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
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.