Reference no: EM131018624
Supply and Demand Analysis of an Article
Economics
The assignment is to choose an article that describes a change in a market or a change that may affect a market. You will then write an essay that starts with a brief summary the main issue in the article, then uses the supply and demand model to analyze the main issue of the article. The purpose of the assignment is to hone your skills using the model and to demonstrate the ability to apply economic models to the real world.
The analysis will either (1) explain a change in the price and quantity of a particular good or (2) make a prediction based on change in a factor that shifts the demand or supply of a particular good. As an example of approach (1), your article might describe rising home prices and sales. Your job would be to explain why house prices and sales rose using the supply and demand model. As an example of approach (2), your article might describe a change in the requirement to earn a teaching credential. Your job in this case would be to predict what the effect of this might be on the labor market for teachers. In either case, I suggest you choose a market that is of particular interest to you.
The Template and Rubric provide a detailed guide of the assignment and grading. Here is a guide to get you started on the assignment:
1. Select an article from a newspaper (print or online) or relevant magazine (e.g. The Economist) that describes either
a. A change in the price and quantity of a particular good or service.
b. Or, a change in a factor that shifts the demand or supply curves in a particular market.
2. Download the Supply and Demand Analysis of an Article Template from Moodle.
3. Before you begin writing:
a. Read the instructions in the template.
b. Read the criteria in the rubric (reverse).
c. Study your article and decide whether you're going to make a prediction or explain a change that has occurred. Many students have found making a prediction to be the simplest route.
d. Construct an outline by answering the questions in the order they appear in the rubric. Sketch the supply and demand graphs on a piece of paper.
e. At this stage you will need to ensure that your use of the model is accurate. If there is any uncertainty here, or if you just want to double check, run your sketch by me.
4. Your first draft:
a. Keep the rubric and template nearby and use them to guide you.
b. Write directly onto the template. Do not change any formatting, the font or the text size. See instructions in the template for changing the header and the graph.
c. After you are done with the first draft, grade your paper using the rubric. Be critical. Can you improve anything? Better yet, exchange papers with a classmate and have them assign a grade based on the rubric. Please don't be afraid to ask me for help.
5. Your final draft:
a. Suggested: Bring your final draft to the HSU Writing Center in the Lower Library 32 before submission to evaluate your writing.
b. Suggested: Stop by during office hours (T,TH 12:20-1:20PM) to review your paper before the due date.
Criteria
What is the main point of the article? Concise summary of the main issue of the article. The reader should not have to hunt for the main point. This summary should not be more than a quarter of a page. This summary should include a sentence such as, "The article describes rising grape jelly prices caused by drought."
What market did you analyze? The reader is clearly informed of the market being analyzed. For example, "In this paper, the possible effect of an increase in the price of jelly is analyzed in the market for peanut butter." This makes it clear to the reader that you are analyzing the market for peanut butter, not jelly.
Which curve(s) shifted and in which direction? The reader is clearly informed whether there is an increase or decrease in demand, supply or both. This can be provided at the beginning of your analysis or nearer the end after you've made you supporting argument.
Why did the curve shift? The cause of the shift in demand and/or supply for each shift is identified and discussed. For example, is it a change in tastes, income, price of a key input...?
Does this shift make sense? A supporting argument for why this determinant causes the shift in demand or supply is provided. For example, "Peanut butter and jelly are often used together. For this reason, they are complement goods. Therefore, when the price of jelly rises we should expect a decrease in the demand for peanut butter."
What are the results of the analysis? Conduct the analysis and give an explanation of the graph and results.
Remember, "Left is less, right is more".
What are the implications of the results? Tell us what these results mean for households, firms, the government, etc. For example, "Lower equilibrium prices and quantities of peanut butter will result in reduced revenues for peanut butter producing firms. These reduced revenues may contribute to reduced employment in this industry."
The article is cited properly in the Works Cited page.
Few, if any, grammar or spelling errors. The paper is properly labeled including the header. To change the header click Insert Header Edit Header.
Your analysis is illustrated with a graph. The graph is neat and properly labeled, including the market, quantity, old and new equilibrium, changes to the supply or demand curves, etc.
Writing is organized, concise and articulate. The minimum word count is 400. The paper is on time, stapled and uses the provided template.
Total Score: