200 words apa style

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Economics

Description

Find an article or use an example from your own business experiences in which supply and/or demand changed. Do not choose the market for labor. The analysis for a labor market is different from a typical good or service.

Include each of the following in your initial post.

1. Explain which curve shifted and which shifter was affected. (If you think both curves shift, for simplicity, just choose one of the curve shifts to analyze.)

2. Discuss how equilibrium prices and quantities changed.

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Explanation & Answer

Uploading the first part in a moment
Attached.

Running head: SUPPLY/DEMAND CURVES

SUPPLY/DEMAND CURVES
Students’ name
Institution Affiliation
Date

1

SUPPLY/DEMAND CURVE

2
Change in Supply

Following a prolonged drought in California in 2015-2016, the supply of fresh fruits and
vegetables in the market reduced significantly. During the period, production of oranges,
avocados, garlic, olives and romaine lettuce reduced by an average of 10% of the previous years.
The drought also led to the increase in the cost of production since the cost of water subsequently
increased during the period. The reduced production has led to a decrease in the number of fresh
fruits and vegetables supplied in the market in the state. The shifters for the supply are the poor
natural conditions for production and the rise in input prices. The drought can be termed as the
poor natural conditions for production while the rise of the cost of water is associated with a rise
in input prices. Following the decrease in supply, an increase in the equilibrium prices and a
decrease in the equilibrium quantity of the fresh fruits and vegetables was noted. This is because
of a decrease in supply results in increased demand at the original price. The excess demand
causes the prices to rise, and quantity demanded to decrease. Following the reduced supply of
fresh vegetables and fruits, an increase in prices for the same was noted within the State of
California.

SUPPLY/DEMAND CURVE

3
References

Bonanno, A. (2012). Food Deserts: Demand, Supply, and Economic Theory. Choices: The
Magazine Of Food, Farm & Resource Issues, 27(3), 1-4.
Future tense, (2016). The California Drought’s Lessons for Food Security
http://www.slate.com/blogs/future_tense/2016/06/22/the_california_drought_s_lessons_f
or_food_security.html

Attached.

Running head: DEMAND AND SUPPLY

1

Demand and Supply
Students’ name
Institution Affiliation
Date

DEMAND AND SUPPLY

2

1. Difference in quantity demanded and a change in demand. Variable(s) must change
for there to be a change in quantity demanded? What variables(s) must change for
there to be a change in demand?
Change in quantity demanded is defined to as the change in the quantity of goods and services
purchased in the market driven by changes in prices of the specific good or services. The change
in quantity demand is driven by either an increase or a decrease in the prices of the specific good
or service. On the other hand, a change in demand is defined as an increase or a decrease in
demand of a good or service due to other factors which influences demand other than prices. In
this, the demand for a product or service in the market changes irrespective of the prices
remaining constant. For there to be a change in quality demand, the price of the product in the
market has to change. An increase in quantity demanded is caused by a decrease in the price of
the product. For there to be a change in demand, several variables come into play. A change in
demand can be due to the increase or decrease in the number of consumers, a change in the
income of consumers such that an increase in the income will lead to an increase in demand
while a decrease in income leads to a decrease in demand. A change in pric...


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I was struggling with this subject, and this helped me a ton!

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