Discussion 2 Questions: Supply and Demand in the News Background In Module 2, y

Discussion 2 Questions: Supply and Demand in the News
Background
In Module 2, you learned how the supply and demand model could be used to predict changes in the equilibrium price and equilibrium quantity of any good or service sold in competitive markets. The 3-step approach to changes in equilibrium is the method that you will apply in this discussion to make your theoretical predictions. Furthermore, you will compare these predictions with the information referenced in your chosen article.

Getting started
Search the Internet using a search engine (such as Google) for a recent article that discusses a change in the price of a good or service sold in a competitive market. For example, search ″price increase/decrease″ and ″price rise/drop.″ Avoid articles that refer to a large market, such as an article referring to an increase in ″food″ prices. Instead, focus, for example, on the price rise of ″eggs″ or ″milk″ as specific examples of the large food category. Also, avoid articles about the stock market. Copy the URL address of the website where the article was found.
• Provide the web link to the article: www. _______________________.
• State the name of the good or service in the article and whether its price has increased or decreased.
Respond to the following:
Part I
Copy the URL address of the website where the article was found.
Provide the web link to the article:
www. _______________________.
State the name of the good or service in the article and whether its price has increased or decreased.
Step 1: Explain the reasons for the price change and identify them as one (or more) of the demand shifters and/or supply shifters of the theoretical model you are about to build. (7 points)
Part II
Step 2: State in which direction each curve shifts. (3 points)
Part III
Step 3: Draw the graph(s), perform the shift(s), and find and label the original and new equilibrium points. Based on the findings from your graph (look at the P-axis and the Q-axis), conclude what has happened to the equilibrium price and equilibrium quantity. (10 points)
Part IV
Explain if your theoretical model predictions/conclusions in Step 3 match the price change referenced in the article, and if available, any information on changes in the quantity sold. (3 points)