Preview

ECONOMIC

Good Essays
Open Document
Open Document
584 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
ECONOMIC
BUSN 5260
Current Economic Analysis
Week 3: Personal Assignment
Some students have difficulty understanding the laws of supply and demand and the difference between changes in demand (supply), which are caused by changes in the respective determinates of demand or supply, and changes in quantity demanded (supplied) which result from changes in the price of the good or the service.
Before you complete this assignment, I suggest that you again review Chapter 3 and my lecture material provided this week. There are some basic principles which must be followed when constructing supply and demand graphs, for example, price is always on the vertical axis and output (quantity) on the horizontal axis.
I also strongly suggest that you review the website Economic Basics: Demand and Supply and the videos Supply & Demand Graphing Using Excel and the Macroeconomics for MBA YouTube Channel, from the Internet which can be found through these links. Please, however, do not spend a lot of time trying to learn how to graph with Excel. Use another tool or simply hand draw your graphs and embed them into your assignment.
If you have questions, remember to post them to the General Questions area of the Discussion forum.

Problems
Problem 1
For each of the following draw a separate diagram to demonstrate the answer. (Hint: Remember the difference in a change in demand [supply] and a change in quantity demanded [supplied]. Don't shift both curves unless appropriate). Describe what happens to equilibrium price and sales. Explain why or why not this makes sense in the real world.
-A-
Show the effect on the U.S. new construction residential housing market in the event of a severe economic recession such as the country recently experienced.

-B-
Show the effect on the U.S. air travel market if American Airlines unexpectedly folds (ceases operations) overnight.

-C-
Show the effect on the U.S. domestic car market if

You May Also Find These Documents Helpful

  • Good Essays

    (a) Draw the demand curve and the supply curve for Belgium cocoa beans. What are the equilibrium price and quantity of cocoa beans from Belgium?…

    • 758 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The laws of supply and demand seem to be a simple concept to understand. In the following paragraphs we will look at how one event in society can change the course of a product that seems to be in an equilibrium state, along with what happens when a product is in surplus or shortage.…

    • 656 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Eco 204 Week 1 Analysis

    • 456 Words
    • 2 Pages

    Supply and Demand . Analyze how the law of demand applies to a recent purchase that you made. Describe how the product has changed in price and explain whether the price change is due to supply or demand. Did the change in price affect your decision to purchase the item?…

    • 456 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Practice Quiz

    • 257 Words
    • 2 Pages

    2) The graph below illustrates the market for computers. If the number of computer buyers increases and technology advances, how will equilibrium price and output in the market for computers be affected?…

    • 257 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Xeco 212 Appendix B

    • 812 Words
    • 4 Pages

    Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity…

    • 812 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Appendix B

    • 702 Words
    • 3 Pages

    Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity…

    • 702 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Supply and Demand . Analyze how the law of demand applies to a recent purchase that you made. Describe how the product has changed in price and explain whether the price change is due to supply or demand. Did the change in price affect your decision to purchase the item?…

    • 696 Words
    • 4 Pages
    Good Essays
  • Good Essays

    ECO 365 Week 2 Paper

    • 625 Words
    • 2 Pages

    Understanding supply and demand is easy, but understanding how they affect the decisions made on what price to charge and when to charge is the challenging part. The shift in the demand curve and the shift in the supply curve, gives you a better idea of how to use the information given.…

    • 625 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Fill in your Answer here: In chart A the price of the supply is high less of a demand there is for the product being sold, the change of demand increases as the price lowers. In Chart B there is not enough product to satisfy the consumers need, the change in quantity demanded increases.…

    • 254 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Supply and Demand is a phrase that every one hears in one way or another, Supply and demand phrase according to Colander, (2010) is the most used phrase by economist and the reason is because the phrase provides a good “off-the-cuff” answer for many question that have to do with economy. Example why are interest rates to Low? Because supply and demand. Why is Gasoline so high? supply and demand. This paper will speak about a simulation found on University of Phoenix student website, simulation named “Applying Supply and Demand Concepts” This paper will speak about macroeconomics and microeconomics principles, Paper will also refer to shift of the supply curve and shift of the demand curve. Also how the how concepts of Microeconomics and Macroeconomics help understand the factors that affect shifts in supply and demand on the equilibrium price and quantity, and last how the price elasticity of demand affects a consumer’s purchasing and the firm’s pricing strategy.…

    • 977 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    The economic aspects of supply and demand the most basic fundamental concepts in economics used by economists to analyse competitive markets. The quantity demanded of any good is the amount of the good that buyers are willing and able to purchase. The law of demand claims that, ceteris paribus, the quantity demanded of a good falls when the price of the good rises. The quantity supplied of any good or service is the amount that sellers are willing and able to see. The law of supply states that, ceteris paribus, the quantity supplied of a good rises when the price of the good rises (Gans, King and Mankiw, 2005).…

    • 1635 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Abc Case Study Solution

    • 405 Words
    • 2 Pages

    4. Please draw the graph of 4 years demand data and write down your observations (5 marks) (max.100 words for observations)…

    • 405 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    (b) A graph of your market supply curve.(You may want to “dress it up” by adding appropriate axis labels, etc.)…

    • 452 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    a. Calculate the price elasticity of demand when the price is $80. When the price is…

    • 6557 Words
    • 27 Pages
    Powerful Essays
  • Satisfactory Essays

    Macroeconomic Terms

    • 497 Words
    • 2 Pages

    During week one, we discuss the difference between supply and demand and the affects that it has on prices and quantity. Example of shifts in demand would be taxes, expectations, income, and other goods. Examples of a shift in supply would be price inputs and technology. I believe that I am comfortable with supply and demand; however, I struggle with the graphs and the visuals of the shift. By taking macroeconomics before this class, in ways has prepared me to have a better understanding of microeconomics and how the economy is studied.…

    • 497 Words
    • 2 Pages
    Satisfactory Essays

Related Topics