The primary tool used in economics is the model of Supply and Demand. The changes that occur with supply and demand move both the prices and the amounts bought and sold. For this discussion, you will analyze a changing factor(s) in a market of your choosing.
Before you post to this discussion, search the Internet for an article that discusses a changing market. Common business websites/magazines that you can search are The Wall Street Journal (Links to an external site.), Bloomberg (Links to an external site.), Forbes (Links to an external site.), and The Economist (Links to an external site.). In the article, you want to be able to identify which of the demand or supply factors are causing the change(s) in the market. The article should state or suggest the cause of the change(s), 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. If the article does not state a reason for the change(s), then you must find another article. It is important the article you choose allows you to identify one or more supply or demand factors that are changing. This way you will be able to state what the Supply and Demand model predicts will happen to the product’s price and the amount bought and sold. Otherwise, the article will not be suitable for this discussion forum.
Once you have selected a suitable article, you are now ready to post to this discussion forum. You will be using your knowledge of the Supply and Demand model to predict what will happen because of the change(s) on the market in your article. [For an example, see my discussion post, “Wary Auto Makers Tap the Brakes,” for what this discussion entails.]
To receive full credit for this discussion, you need to post:
- A brief description of the factor(s) causing the demand or supply (or both) to change and in which direction(s).
- An analysis of how the supply and demand model predicts these changes will affect both the product’s price and amount bought and sold. If the article does not explicitly give the price change, then you must state what the model predicts. If the article does give the price change, then your use of the supply and demand model should corroborate it.
- The URL address where you found the article (or a link within your write-up).