Part I (more than 250 word )
- Find an article from the last three months that discusses a change in the equilibrium price or equilibrium quantity (or both) of any good or service. The article will not mention the term equilibrium, but that is fine. This can be on ANY good or service, such as cell phones, haircuts, video games, pizza, lawn-cutting services, recreational vehicles, bicycles, and so on. The list is endless. You can choose any product or service EXCEPT GASOLINE. You must provide documentation of your article in sufficient detail so that anyone else in the class can find your article. I leave the documentation format to you, such as MLA, APA, or another format, but the citation is REQUIRED and must be specific enough so that your article can be located by others.
- Summarize the article IN YOUR OWN WORDS. You need to provide specifics in terms of what is happening and why.
- Analyze what is happening in terms of the demand/supply model. In this section you must be very detailed. Explain which curve or curves are moving, which way they are moving, and why.
- State the concluding results of your analysis.
As an example of steps 3 and 4, assume that you have located an article about gasoline indicating higher prices and higher sales because people are driving more as they return to work and stop working at home. After summarizing the article and providing the citation information, you then go on to state that the increase in the number of consumers has caused the demand curve for gasoline to shift right. This results in an increase in the equilibrium price and the equilibrium quantity. This explains why gas prices have increased and why gas stations are seeing increased purchases of gasoline.
If there are influences on demand and supply, you must indicate this and discuss the uncertainty resulting from the movement of the two curves, unless the article provides enough information to eliminate the uncertainty.
Part II ( more than 100 word per a reply )
review the post of a classmate.
Write a commentary on their post. If you agree with the analysis, indicate this. If you disagree, indicate why. Be sure to follow the rules of Netiquette outlined in the syllabus. Most importantly, be professional and polite. Your comment must be substantive. You will not receive any points if you merely state “I agree,” “good job,” or make a similar remark
first classmate comment : During the pandemic, the prices of used cars rose to an all-time high. Car parts essential to the production of cars became limited forcing the equilibrium price to increase. These prices had started to balance out, however, a new shortage of chips caused another increase. Some other contributing factors to this would be a shortage of manufacturers and a loss of wages making used cars more economically feasible than new ones. In this example, there is no trade-off, but if it were to be on the production possibility frontier it would be a point outside of the ppf since it is unattainable given the currently available resources and technology. Since there is a shortage caused by multiple factors and no more goods will be produced, there will not be an equilibrium price until the demand falls. On a demand and supply curve there would be a rightward shift of demand caused by an increase in demand and a leftward shift of the supply caused by a decrease in supply. This seems to be an ongoing issue that will remain constant for a period of time until other factors are back to normal. This is called cost-push inflation.
Reply : here
second classmate comment: Cell phones have so far been for the most part been protected from the chip shortage, as enormous makers amassed basic parts. A worldwide lack of central processors has affected everything from vehicles to video game control centers. Since the pandemic, there has been a worldwide shortage of many products. Cell phones seem to be appearing as though they are going to be following up in shortages. Meanwhile, “[cell] phone companies [did not] drop their demand for chips as the automotive sector did when they expected a drop in demand for cars,” toward the beginning regarding the pandemic as expressed in the article. Due to this fact, the demand curve has stayed equivalent. Interest for cell phones wound down in 2020 as the Covid pandemic seethed, with deals declining 12.5% as per Gartner. Despite the fact, that request has been rapidly recuperating this year, as a few nations lift their Covid lockdown limitations. Gartner says that worldwide cell phone deals became 26% in the main quarters which caused the supply curve to shift to the right with the increase in sales. At the time covid improves, there will be an ascent underway delivering more and less worldwide deficiencies.
Reply : here