Econ

Assignment – Supply and Demand

This assignment will likely be the most challenging of the semester, so give yourself a lot of time.

You will choose one of the attached news article on an event which shifts the supply or demand curve (or you can one of your own); then draw and explain the reason for the shift.

Detailed Instructions:

1. Look over the articles at the end of these instructions and choose one to use. If they are all taken or none interests you, you can find your own by going to www.marketplace.org and finding an article about a consumer product and something that has occurred to cause a change in the price or quantity.

2. Post a “reserve” under your Assignment Group so that no one will use the article you have chosen. You cannot use an article someone has already reserved or written about.

3. Write a paragraph describing the situation, and provide the link.

4. Draw a supply/demand graph of the product. It must be hand drawn on graph paper and done very neatly with a straightedge (neatness will be part of the grade). Take a picture of it and post. You don’t need exact prices or quantities; you can use the letters P and Q. Include axis labels and equilibrium points, and label all lines.

5. Decide what change or changes will occur on the graph based on the events in the article and draw the change.

6. Review the tutorial on Supply and Demand. In the tutorial it discusses “determinants” - categories of situations that can shift the demand or the supply curve.

7. Fill out the following sentence as a way to describe your graph:

My graph shows the market for ­­­­­­­­­­­­­­­_______________. On the graph, the ___________ curve shifted to the _____________ causing the equilibrium price to _______________ and the equilibrium quantity to _____________. The determinant that caused the shift is ______________. The information in the article that supports this determinant is: _________________________________

Example:

Biking Has Taken Off in New York – May 11, 2015 http://www.marketplace.org/topics/sustainability/biking-has-taken-new-york

3. The number of bicycle riders has increased in New York City, from under 5000 in 2000 to over 20,000 in 2015. At the same time, the per-rider accidents have decreased. Part of the increase is from bicycle-sharing companies, which offers discounts to people in public seniors.

Demand

Quantity

7. My graph shows the market for ­­­­­­­­­­­­­­­bicycles. On the graph, the supply curve shifted to the right causing the equilibrium price to decrease and the equilibrium quantity to increase. The determinant that caused the shift is number of firms in the market. The information in the article that supports this determinant is: the article talked about a new service, CitiBike that was offering bicycles at a lower price for rent, so the number of firms has increased.

(Note that your own graph will be drawn by hand)

Submission Instructions:

See syllabus for the weekdays that post, peer review and final post are always due. There is detail on how to do the peer review. Be sure to give a peer review to someone who hasn’t had one yet if possible. And give them a lot of help – they need your input! Here is an example of a peer review:

Example of a Peer Review:

Below is an example of a peer review to the above post (only assume that the post had said “tastes and preferences” as the determinant).

3. Your paragraph is well written. The situation is explained clearly and you provided the link. My only comment would be that you might want to talk about CitiBike since you put it in later on. It’s kind of confusing to not have it in the introductory paragraph as we don’t know what it is when you talk about it later.

4. Your graph looks correct – but don’t forget that we are required to hand-draw the graph on graph paper.

7. You said that “tastes and preferences” was the determinant – but that is a determinant for the demand curve, not the supply curve. I believe the correct one would be “number of firms”, because now that there is another company the number of firms has increased.

Remembe r that neither the assignment nor the peer review are essay format – they are numbered after the assignment numbers.

Grading Rubric :

18-20– Submission and peer review show excellent, thoughtful and complete work. There are no mistakes in the analysis either for the submission or the response, the graph is neatly and correctly draw using graph paper (if hand-drawn), and fully labeled. Reasons given for the shift are clear and correct. Submission contains high-quality college-level writing that has been carefully edited and proofread and contains no errors. Contains only positive economic statements; no normative statements.

16-17– Submission and peer review show good effort, and analysis on both are correct. Graph is relatively neatly done, Reasons given for shifts are correct. Writing is quality college-level work; may contain one to two errors. Contains only positive economic statements; no normative statements.

14-15 – Submission and peer review show average effort with analysis and explanation of curve shifts mostly correct – may contain some minor errors. Graph is clear enough to interpret and most labels are included. There may be minor grammar spelling and punctuation, or minor normative comments.

12-13– Poor effort, graphic not clear, missing labels, or extremely messy; or analysis contains numerous errors, or writing contains numerous errors, or assignment contains obviously normative comments, or peer review not there or not substantive.

0-11– Incomplete or very poor effort; article not appropriate for use with AD/AS curve, or graphic not included or grossly incorrect;, or no explanation or curve shifts, or writing is poor, not at college-level, with little or no evidence of editing and proofreading, or contains overtly normative statements, or peer review not included or not substantive.

List of articles to choose from (you can also find your own if none of these interest you or if they are all taken):

1. Market for Walnuts (not pecans): http://www.marketplace.org/topics/business/walnut-prices-rise-consumers-look-pecans

2. Market for Pecans (not walnuts): http://www.marketplace.org/topics/business/walnut-prices-rise-consumers-look-pecans

3. Market for Avocados: http://www.marketplace.org/topics/sustainability/us-avocado-consumption-ripe

4. Market for Broiler Chickens: http://www.marketplace.org/topics/economy/why-egg-prices-have-been-climbing-while-chicken-prices-are-falling This is a tricky one so here’s a hint: The supply DID NOT increase.

1. Market for Milk (not for things made with milk): http://www.marketplace.org/topics/sustainability/food-and-drink/rising-milk-prices-affect-foods-pizza-nachos

2. Market for Airline Travel (not stock prices): http://www.marketplace.org/topics/business/profitable-airlines-face-grumpy-investors

1. Market for Video Cameras: http://www.marketplace.org/topics/tech/video-cameras-spread-more-workplaces

1. Market for ALL doctor visits (includes in person and virtual): http://www.marketplace.org/topics/tech/virtual-doctor-will-see-you-now

1. Market for in-person doctor visits: http://www.marketplace.org/topics/tech/virtual-doctor-will-see-you-now

1. Market for Commercial Drones (if the FAA approves) http://www.marketplace.org/2016/04/06/tech/final-note/faa-suggests-it-might-be-okay-drones-fly-over-you

1. Market for Bottled Water http://www.marketplace.org/2015/09/01/business/why-buy-water-when-you-can-have-it-free