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QUESTION
I. Classify the firm into one of the four basic market models
A. Select a company from a current business periodical or where you work, and state which market model is represented by this company. Explain your reasoning using a narrative format. (Refer to CHART in Work Book PG. 224). A current business periodical means a business news article that is dated after the first day of this semester. Write about what is happening to the firm today, not what happened last year.
B. State the basic industry situation and proceed to analyze using the following methodology where appropriate. Be sure to include the six (6) graphs, as indicated.
c. Watch the supply and demand analysis video series (Steps 1, 2, and 3) provided for you in this module to help you create your supply and demand graphs.
D To learn how to create graphs in Microsoft Word you may view the video called
Economic Class – How To Make Graphs in Microsoft Word. (Links to an external site.)
II. Supply & Demand and the Price System Graphs
A. What is the current demand situation – is the curve changing (use graphs)?
Graph #1: Demand Curve and any Changes (CHOOSE ONE):
1. Curve shift and underlying causes
2. Movement along the curve and causes
B. What is the current supply situation – is the curve changing (use graphs)?
Graph #2: Supply Curve and any Changes (CHOOSE ONE):
1. Curve shift and underlying causes
2. Movement along the curve and causes
C. Market Equilibrium (use graphs)
Graph #3: Demand & Supply Curves with Changes
1. Surplus/shortage (where appropriate)
2. Price ceilings and price floors (where appropriate)
D. Changes in Income & Results
1. Superior/normal or inferior goods
E. Changes in Prices of Related Goods & Results—CHOOSE ONE:
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