10 May Products Home
Products
| Event | Market for: |
| Economic growth is expected to improve in the next two quarters. | Aluminum |
| Fire at an oil refinery in the Gulf will not be fixed for a month. | Gasoline |
| The Japanese government has decided to subsidize its domestic automobile producers with stimulus money. | Automobiles |
| Manufacturers who use plastic as an input have access to cheaper plastic. | Manufactured goods that use plastic as an input |
Using the table, for each line item, write a paragraph describing how the market for each specific product will be affected by the associated event. Describe which curve will shift (demand or supply or both), what effect it will have on price (rise or fall in price), and what will happen to quantity (rise or fall in quantity). Each line item requires a paragraph.
Grading Rubric for Week 2 Written Assignment
Note: Words are critical when describing supply and demand analysis. My grading rubric is below:
1. Which curve shifts? Demand or supply? (10 points)
2. In which direction. Left or right? (5 points)
3. What happens to equilibrium price? Increase or decrease? (5 points)
4. What happens to equilibrium quantity? Increase or decrease? (5points)
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