Demand, supply, and equilibrium.
This assignment focuses on demand, supply, and equilibrium. Let’s start with the basics. Begin your assignment by providing the following information.
Explain the difference between a movement along demand and supply curves and a shift of demand and supply curves.
What can cause the above situations? Provide an example for each.
Describe how equilibrium is found.
Describe how a shift of the demand or supply curve can affect equilibrium.
Now, select an industry with which you are familiar or one you would like to study. This industry will also be used in future assignments for this course. After selecting your industry, identify a product or service that your chosen industry produces. Add the following information.
Define the current status of supply and demand for the product or service you identified.
Identify at least one factor that has caused the supply curve to shift for that product or service.
Identify at least one factor that has caused the demand curve to shift for that product or service.
Sample Solution
Demand curve movement refers to changes in price that affect the quantity demanded. A demand curve shift refers to fundamental changes in the balance of supply and demand that alter the quantity demanded at the same price. The movement along a demand curve occurs due to a change in the price level of the goods. In contrast, a shift in the demand curve occurs when other variables such as consumer income, substitute goods price, and other changes. When the price level decreases, the demand curve moves upward or contracts towards the left side while keeping other variables constant. And as the price levels decreases, the demand for the good extents to the right while other factors are constant.
