Process

Introduction:

Access the following link; Supply and Demand

What is supply? Provide an example of supply.

What is demand? Provide an example of demand.

Part 1:

Access the following link; Supply and Demand of PlayStation 3

After reading the article, please explain in your own words what happened with the supply and demand for the PlayStation 3 game console.

Part 2:

Access the following link; Supply and Demand of Oil

After reading the article, explain in your own words how supply and demand for oil is changing.  Additionally, address what determinant may be causing the increase in prices.

Part 3:

Access the following link; Supply and Demand of College Football Tickets

After reading the article, explain in your own words, the supply and demand of college football tickets.  Additionally, create a graph which depicts the changes in supply and/or demand discussed in the article.

Part 4:

Access the following link; Interactive Supply and Demand

 

Once you have read the information in regards to demand and supply, use Diagram 1 to answer the following questions listed under Get Interactive.

 

1. What would happen to quantity demanded in the following cases? Explain why people may react in the way you have observed.

      Price rises to 8.

      Price rises to 9.

      Price falls to 3.

      Price falls to 1.

 

2. Read the information after Diagram 1 about necessities versus luxuries and substitutes versus compliments.  Then, using Diagram 1 and 2 answer the following questions listed under Get Interactive.

                                                               i.      At a price of 5, what was the quantity in Diagram 1?

                                                             ii.      At a price of 5, what is the quantity in Diagram 2?

                                                           iii.      Compare what happens to the quantity demanded in Diagram 2 if price changes by the same amounts as you observed in Diagram 1 above.

                                                            iv.      Why do you think this might be?

                                                              v.      What types of products might Diagrams 1 and 2 represent?  Give an example of each.

 

3. Scroll all the way down to the bottom of the page and click Page 2.  Choose one of the factors affecting the level of demand from the drop down menu. 

                                                               i.      Moving the slider towards the + and -, paying attention to what is happening with price and quantity demanded.  In your own words, describe what you are observing.

 

4. Scroll down to Diagram 5 and use it to answer the following questions listed under Get Interactive.

                                                               i.       At a price of 5, how many products would suppliers be willing to offer for sale on the market?

                                                             ii.      If the price were to change to 2.5, what would happen to the amount offered for sale?

                                                           iii.      If the price were to change to 8.5, what would the level of supply being offered for sale now be?

5. Scroll down to the Diagram titled; Factors influencing the level of supply – this is directly below Diagram 7.  Choose Technology from the drop down menu.

                                                               i.      Moving the slider towards the + and -, paying attention to what is happening with price and quantity supplied.  In your own words, describe what you are observing.

 

Part 5:

 

  1. Access the following link; Price
    1. What are the factors/determinants that can shift the demand curve?
    2. What are the factors/determinants that can shift the supply curve?
    3. Explain in your own words what a price ceiling is.  Give two examples.
    4. Explain in your own words what a price floor is.  Give two examples.

 

 

ASSESSMENT

Part 6 :

Access the following link; Supply and Demand Quiz

Answer the the ten question module quiz.  List your percentage correct as well as the question numbers which were answered incorrectly.

Part 7:

Access the following link; Supply and Demand Graphing

Scroll down to the bottom of the page and study the table titled Result of Shift in Supply and Demand.  Electronically create a graph of the first four examples to prove that an increase or decrease in supply or demand would have that effect on the equilibrium price and quantity.