ECON312 Week 2 Case Study Latest 2019 january Question # 00597332 Course Code : ECON312 Subject: Economics Due on: 01/29/2019 Posted On: 01/29/2019 09:58 AM Tutorials: 1 Rating: 4.6/5

ECON312
Principles of Economics

Week 2 Case
Study

Supply and Demand

OVERVIEW

A market exists whenever buyers and sellers meet to exchange
goods and services. A mall is a market, a street is a market, your classroom is
a market, a garage sale is a market, and even the airplane you ride is a
market. Markets are everywhere. Their primary purpose is to get suppliers
(producers) and demanders (buyers) together to sell and buy at a price they
both agree on.

Market demand represents the sum of the individual demand
for a commodity (a good or a service) from buyers in the market. On the other
hand, market supply represents the total quantity of a commodity that producers
are willing and able to provide to the buyers at a given price level. Market
equilibrium occurs where the quantity supplied equals the quantity demanded, and
the market price (equilibrium price) is set at that quantity (equilibrium
quantity).

The equilibrium price and equilibrium quantity are not
static, however, meaning that they change due to changes in market demand or
market supply.

A commodity or an idea might be a “hot item” and very
popular at one point in time where people are willing to pay a high price for
it, and producers will be willing to produce more of it because it is
profitable. Smoking a cigarette at one point in time was considered a symbol of
“a tough man” and smoking was acceptable everywhere, including inside
hospitals! But what has changed for cigarettes? Whenever the demand for a
commodity rises or declines, and whenever the production of a commodity expands
or shrinks, it is certain that at least one market force or a set of market
forces have taken place to cause this change. At the same time, whenever market
demand and/or market supply changes, the market price and the quantity of that
commodity available in the market changes, too.

Dynamic and free markets are constantly changing due to
changes in factors (determinants) that affect either demand, supply, or both.
Analyzing and understanding the forces behind the shift in market demand and
market supply determines the growth pattern of the commodity.

Assignment Description

In this assignment, we are going to analyze the changes in
market demand and market supply for a commodity (a good or a service). In
addition, we will also analyze how the changes in demand and supply affected
the market price and production of this commodity. To do so, we will are going
to address the key factors (determinants) that have caused the shift in demand
and/or the shift in supply. The goal here is to provide an objective analysis
of the forces that have caused this change in order to better understand the
behavior of the market and to determine the potential growth or decline for
this commodity. Some of the commodities that have experienced a drastic change
(an increase or a decrease) in supply and/or demand in recent years are organic
foods, cage-free eggs, social media, higher education, online education,
healthcare services, online banking, online shopping, DVD players, digital
cameras, fidget spinners, health clubs, bottled water, landlines, Cash for Gold,
and fried food. You could use one of these commodities for your study or choose
one you are familiar with or prefer.

To start, select a commodity that you wish to analyze to
determine changes in its market demand, market supply, equilibrium quantity
(output), and equilibrium price.

Your research should be structured with consistent and clear
thoughts. It should be supported by facts and data, and you must base your
results on these facts. Your conclusions should be thorough and based on your
findings and understanding of supply and demand determinants.

Writing Style and Page Number Requirements

Font Type: Times New Roman or Arial

Font Size: 12

Spacing: Double

Number of Pages: Four to six pages, along with a separate
Title page and a separate References page

Structure and Requirements

Title Page

Title of the paper

Name of the author

E-mail address of the author

Class name

Professor’s name

Date

Introduction

Describe your commodity and the market that commodity
targets. Also, state when, how, and why it became popular or less popular. In
addition, state the factors (demand determinants and supply determinants) that
have caused its supply and demand to change and how those changes affected its
price. Basically, why has demand and supply for that commodity changed?

Data

Obtain data from at least three credible sources (not
Wikipedia) to provide facts about the changes in demand and supply.

Use tables, graphs, and figures to support your argument.
You could use figures that show the changes in demand and supply, as well as
changes in the market price for the commodity.

Analysis

Use the findings from your data section to fully explain the
growth or decline pattern of the supply and demand. Is the commodity growing or
is it declining, and why? If it is growing, state the factors that led to its
growth. If it is declining, state the factors that led to its decline.

Conclusion

Provide your own final thoughts, opinions, and understanding
of the outcome. Do you believe this commodity is profitable for its producers?
Or should they provide something different instead? Should they modify the
commodity? Moreover, if you were to produce this commodity, what would you do
to increase your revenue?

Reference List

Use at least three professional sources to support your
argument. The references need to be in APA format. To learn more about APA
format, click on the link below.