The purpose of your assignment is to apply the week’s conceptual models to analyze how external factors affect the supply and demand curves. Select one of the following cases. Analyze the impact of these events on the markets, on the supply and demand curves, and consequently, prices and volumes:
You must explain how the supply and demand curves are affected: do they shift to the right or left? Do they change their slope? What happens with the new equilibrium prices and sales volumes? Do they affect the elasticity of the demand or supply?In the short term, did the curve shift or was there only slippage on that curve? If the curve shifted, did it shift to the right or to the left? As it shifted, was there a shortage or excess in quantities demanded/supplied? As a result, what happened to the equilibrium price? To the equilibrium quantity? Finally, you should copy the supply and demand model scenario that best illustrates your answers.
You should also explain your projections in the long run. What will happen in the long run with equilibrium prices and quantities? Explain why. In this section, you should also choose and copy the supply and demand model scenario that best illustrates your answers.
Your paper this week should be between 250 and 350 words. At the bottom of your assignment, you should include a word count.
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