Market Equilibrium Economics - Choose a product or service

Market Equilibrium ECONOMICS

Worksheet 2- Market Equilibrium  

Directions:

Choose a product or service of your choice (like apples or oil, for example). Complete the worksheet and upload it to Moodle.

1. What is the product? Who are the typical consumers of the product? Who are typical producers of the product? (Who are the demand and supply curves representing, in real life?)

2. Go to Google and find information on the market price of the product. (For example, for Apples you would Google ‘What is the market price of apples?’, or see how much apples cost at Fry’s this week.)

3. On the graph below draw a demand curve and supply curve for your product. Label the horizontal and vertical axes, and label the curves.

4. Suppose consumer income increased. What impact would you expect an increase in consumer income to have on the market shown in question 3? Draw both the original and new equilibrium price and quantities on the graph.