PRODUCTS DEMAND AND SUPPLY

Select* a product in which the demand for the product is clearly affected

by the strength or weakness of the overall economy such as new homes, cars,

appliances, smart phones, etc.

*Write* a 1,050-word paper in which you address the following:

- Identify and define two economic indicators that reflect the strength

of the economy (e.g. real GDP, unemployment rate, inflation rate, interest

rate, housing starts, etc.).

- With these economic indicators in mind, how has the economy affected

the demand for and supply of your selected product over the last 2 years?

- What was the impact on the supply of the product and the impact on the

demand for the product?

- Explain the impact on the price of the product and your decision on

whether or not to buy the product.

- Include responses to the following:

- How might you apply what you learned about supply and demand to

your work place or your understanding of the product you are considering

purchasing?

- How do the concepts of macroeconomics help you understand the

factors that affect shifts in supply and demand on the price of

the product?

*Cite *a minimum of three peer-reviewed sources not including your textbook.