Textbook: The Macro Economy Today, 16th ed

CH 3: Market Analysis Assignment


STEP 1: 

A. List the “shift factors” or “Determinants of Demand” as listed in your book or in the Lecutre in this Lesson

B. List the “shift factors” or “Determinants of Supply” as listed in your book or in the Lecture in this Lesson


For each of the following market situations, you will answer the following questions:

1.  A. Was it the supply or demand curve that shifts? 

     B.  Which way does it shift? (increase or decrease) and WHY.

     C.  List the “shift factor” or determinant that caused the shift?

2.  What happens to the final equlibrium price and quantity as compared to original equilibrium?

3. Use the attached spreadsheet for your answers.

For example:

Airfare to Florida in January.  the demand shifts to the right due to a change in taste and preference of buyers causing the new equilibrium price and quantity to increase

Demand or Supply shifts? Right or left? Determinant or “shift factor”? new equil P?  new equil Q? Demand right                                                    taste and pref of buyers         increase                          increase                 

SCENARIO 1:  FLORIDA HOTEL MARKET:  Everyone wants to travel to Florida after their COLD January

SCENARIO 2:  DESKTOP COMPUTER MARKET: laptop computers become less expensive

SCENARIO 3:  ORANGE MARKET:  oranges are “in season” in Florida in winter (being harvested)

SCENARIO 4:  NEW HOME MARKET: cost of building materials increases

SECNARIO 5:  DOLPHINS FOOTBALL TICKETS:  Miami Dolphins have great prospects for next year

NOTE:These answers should be typed into the attached spreadsheet or re-create your own spreadsheet