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 as follows: 1. Has there been an increase or decrease in demand? Factors that could shift the deman

If the incident shifts either the supply or the demand curve, then one needs to evaluate

the context on the equilibrium price together with the quantity.




The level of supply and demand determines the quantity of specific commodities that

need to be produced in an economy. For instance, if the buyers develop an increase with the

taste of a particular commodity this shall lead to an increase in the demand of the commodity

and eventually leads to an increase in the price level. Moreover, this actually encourages the

producers to produce more goods. Therefore, the price signal more wants and desires.

Actually, this is the main reason why markets are the best method of organizing any market

and economic activity.


Basically a market is defined as a combination of sellers and buyers that determine the

level of demand a number of sellers that comes up with the supply of a particular commodity.

This is different from a competitive market that consists of a number of buyers and sellers

with the same good that has an impact on the level of the market price.