Consider the application of demand and supply in real life in this discussion activity.

In chapter 4 of the textbook, we study the market forces of supply and demand. We also learn the determinants of demand: Price and Non-Price Determinants. Please choose one of the articles from the list below illustrating a change in price or quantity in some markets and discuss the following questions.

You can choose ONE of the articles below to complete your discussion assignment:

1. Article: Dry weather has decreased Ghana’s cocoa production by 22% from last year
2. Article: Hyundai’s car sales are affected by lower gas prices
3. Article: New cage laws for chickens decrease the number of chickens

A. What changed? (You may answer “no” some of the following questions)

• Identify the market or the good/service you are analyzing the determinants of demand and supply.
• Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, or changes in the number of consumers in the market.
• Has there been an increase or decrease in supply? Factors that could shift the supply curve include changes in costs of materials, wages, or other inputs; changes in technology; or changes in the number of firms in the market.
• Has there been a movement along the demand curve? The price of the good itself is the only factor that could make a movement along the curve.
• Has there been a movement along the supply curve? The price of the good itself is the only factor that could make a movement along the curve.

B. Which curve shifts?

C. What happens to the equilibrium price and quantity?

Responses: Finally, respond to at least two of your peers whose article is different from yours. Do you think your peer correctly identifies all determinants of demand and/or supply? If yes, evaluate your peer’s elaboration on changes in equilibrium quantity and price. If no, which determinant your peer misses to include in her/his initial post?

NOTE: The following video of me illustrates the “Hot Chocolate market” and it may be helpful to understand the differences between shifting and moving along the curves (Watching video is optional!)

Watch Video: Hot Chocolate Market

Directions

• Make your initial post by Thursday 11:00 pm of this week and comment on at least two of your classmates’ posts by Sunday 11:00 pm.
• Post your response to the discussion and then read your classmates’ posts. Post a response to at least two of your classmates’ posts. The initial post should be no less than 150 words and no more than 300 words. Your reply post should be no less than 75 words.
• Discussions need to be professional. Please make proper use of capitalization and punctuation and make sure that there are no misspellings, incomplete sentences, or other grammatical errors.
• The basic criterion for a discussion post to be considered effective is that your message is original and intelligible. You must communicate concisely and clearly.