Supply and Demand
Consider the following 4 scenarios:
1. A Change in Quantity Demanded resulting from a change in price. The demand curve itself does not shift. (Supply and Demand)
2. A Shift in Demand resulting from a change in one of the non-price determinants of demand.
3. A Change in Quantity Supplied resulting from a change in price.The supply curve itself does not shift.
4. A Shift in Supply resulting from a change in one of the non-price determinants of supply.
For these 4 scenarios, complete the following:
a. Find an article that corresponds to the situation. Include a printed copy of the corresponding article (or a URL linked to the article) when you turn in the assignment.
b. Draw a graph that illustrates the change suggested in the scenario. Label the graph properly:label the axes, the curves, the equilibrium points, and draw directional arrows indicating movement along a curve or movement (shift) of the curve itself.
c. Write a paragraph of explanation. If there was a shift in supply or demand, identify which of the non-price determinants caused the shift.
Please label these 1a, 1b, 1c, 2a, 2b, 2c, 3a, 3b, 3c, 4a, 4b, & 4c
4. Search online for the price of a one-day ticket to Disneyland and for the price of a multi-day ticket. Site your source. Is the per day price is less if you buy a multi-day ticket? If so, what do you think Disney executives believe happens to consumer satisfaction as each additional day at Disneyland is consumed? Which economic principle explains this phenomenon?
5. Assume ticket scalping for UofA football games is legal. Describe your strategy for maximizing the amount you receive for each ticket, including each factor that you think might determine a consumer’s willingness to pay: proximity to the stadium, minutes until kickoff, your appearance, etc.
6. Explain whether you think there is a market for relationships. Are places designed to encourage the formation of relationships, like the Frog & Firkin or match.com, the retail stores for relationships? Describe the market for relationships. Who are the suppliers? The consumers?
Title: News Assignment 1: Supply & Demand
News Assignment 1: Supply & Demand
Price change causes movement along the demand curve and such a change is shown by the black arrow in the diagram below. The effect is created by keeping other factors constant and make demand be affected by price only. A shift in demand curve from demand 1 to demand 2 shown by the red arrow is an indication of the non-price determinant. One example of the determinant is increase in disposable income result to an upward shift. Price causes the quantity supplied to change but no shift in the supply curve. Such a change from the graph is movement along the supply curve and is shown by supply 1 (Petrarcanomics, 2008). A shift in supply curve from 1 to 2 is caused by non-price determinants such as increase in production or advertisements. The change is shown by the light blue arrow in the graph.
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