Think of an example from everyday life of an event that caused either the supply or the demand for a product to increase or decrease (please only shift one curve). Please take the time to think of a straightforward (easy) example; it will work much better.

Once you have your example, please complete the following steps for your discussion post:

write a short description of the event explaining if it caused the supply curve OR the demand to shift and in which direction (increase or decrease)
explain how the shift affected the quantity and price in the market for the product.
draw a graph showing:
the original supply and demand curves

the original equilibrium point

the original quantity and price (q1 and p1 are fine – you don’t need to add real prices or quantities)

how the curve shifted (right or left)

the new equilibrium point

Model

5.6s

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Example: The Great Avocado Toast Craze

Event: A popular celebrity chef features a delicious-looking avocado toast recipe on their social media, sparking a nationwide craze for the dish.

Shift: This event would cause a shift in the demand curve to the right (increase in demand). People suddenly want more avocado toast, leading to an increase in the demand for both avocados and bread.

Effects on Quantity and Price:

• Quantity: The increased demand will lead to an increase in the quantity of avocado toast sold in the market as restaurants and consumers respond to the higher demand.
• Price: The increased demand will also cause the price of avocado toast to rise as sellers recognize the opportunity to charge more for their product.

Graph:

[Image of a supply and demand graph with the following features]

• Original Supply and Demand Curves: A standard supply and demand curve with an initial equilibrium point (E1).
• Original Equilibrium Point: The intersection of the original supply and demand curves, labeled E1.
• Original Quantity and Price: The equilibrium quantity and price are labeled q1 and p1 respectively.
• Demand Shift: The demand curve shifts to the right (increase in demand).
• New Equilibrium Point: The intersection of the new demand curve and the original supply curve, labeled E2.
• New Quantity and Price: The new equilibrium quantity and price are labeled q2 and p2 respectively, demonstrating an increase in both quantity and price.

Conclusion:

This example demonstrates how a change in consumer preferences, fueled by a popular trend, can directly impact the demand for a product and ultimately affect the price and quantity sold in the market.