Part 1: Supply and Demand Article Report writing (20 marks)
Due to the recent Global COVID-19 pandemic and Ukraine- Russia War, many markets have been directly or indirectly affected. Based on your own country, find an article in a recent newspaper or magazine illustrating a change in price or quantity in some market.) Analyze the situation using economic reasoning. In the report include:
1. Introduction, provide brief summary of what the article is about with proper reference to the chosen article.
In the Body, Discuss,
2. Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, or changes in the number of consumers in the market.
3. Has there been an increase or decrease in supply? Factors that could shift the supply curve include changes in costs of materials, wages, or other inputs; changes in technology; or changes in the number of firms in the market.
4. Draw a supply-and-demand graph to explain this change. Be sure to label your graph and clearly indicate which curve shifts.
5. Discuss, due to changes in price and quantity, is there a surplus or shortage in the market and what the government has done to mitigate the inefficiency in the chosen market
6. In Conclusion, as an economist what will you suggest to your government and to the people of your country?
Guiding Points:
Please take a picture of the chosen article and paste it in the Appendix section of the assignment.
Avoid using advertisements because they contain little information.
Most changes will only shift one curve—either supply or demand—not both. Price changes will not cause either curve to shift. (But shifting either curve will change the price.)
Equilibrium points are not fixed. They change when supply or demand changes. Prices will not necessarily return to previous levels nor will quantities.
