We learn that the supply and demand for a good or service can shift in response to changes in certain variables, and about how supply and demand interact to determine the market equilibrium price.
Please identify a price change you have observed in the last few years. Do not choose gasoline or smart/cell phones, please pick something else.
Use the supply and demand model to explain the price change you identified in A) above. You should be talking about what happened with supply and demand curves, so please be sure you talk about both of these. You don’t need to search the internet for information about this, because I don’t care if you are correct. I just want to see if you can use the model to explain price changes, so if your explanation would create the change you observed, that is all I’m looking for.
Summarize your explanation with one sentence that mentions what you think has happened to both supply and demand, and how this interaction has resulted in the price change you observed. If both curves are moving, you will need to comment on the relative size of each shift to justify the price change you observed.
Sample Solution
