10 Jul EXPAND ON THE INFORMATION IN THE ARTICLE TO MAKE ECONOMICALLY SOUND HYPOTHESES.
For example there are many concepts from class that can be linked to the USA Today article Vanilla Shortage Threatens the Price of Desserts. The poor harvest mentioned in the article can be interpreted as a decrease in supply. From our discussions of supply and demand you know that a decrease in supply in the vanilla market leads to an increase in the equilibrium price of vanilla. Furthermore vanilla is an input or ingredient for ice cream and many desserts. If the price of an input rises supply decreases in the ice cream markets and ice cream prices rise.The article you select does not have to contain explicit economic terms. For example you might use the supply and demand model to predict that the Chicago Cubs World Series victory will lead to increase in future ticket prices due to an increase in demand. Might other markets be impacted as well? Officially licensed apparel? Food vendors? Parking fees? Expand on the information in the article to make economically sound hypotheses. These are limited examples. Find an article that interests you!
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