CA Decrease in Oil Prices Due to Increased Oil Production Discussion

Question Description

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Supply and Demand Discussion

Please think of an example from everyday life of an event that caused either the supply or the demand for a product to increase or decrease (please only shift one curve). Please take the time to think of a straightforward (easy) example; it will work much better. 

Once you have your example, please complete the following steps for your discussion post:

  1. write a short description of the event explaining if it caused the supply curve OR the demand to shift and in which direction (increase or decrease)
  2. explain how the shift affected the quantity and price in the market for the product.
  3. draw a graph showing:

               the original supply and demand curves

               the original equilibrium point

               the original quantity and price (q1 and p1 are fine – you don’t need to add real prices or                    quantities)

               how the curve shifted (right or left)

               the new equilibrium point

               the new quantity and price (q2 and p2 are fine)

Explanation & Answer

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