Based on a current event, that you have either learn from direct experience, read on the news, read from an Economics journal, or taken from a high-quality source, please do the following exercise. In a paragraph or two:
Clearly identify the market you are analyzing. Describe a situation or event that is affecting that market and clearly identify how and why the demand side of the market is affected, or the supply side of the market is affected.? Or both? In which direction (to the right or to the left) will the demand curve shift? or the supply curve? At the end of your example: will prices and quantity in equilibrium be higher or lower?
Example: I will analyze the market of great value sodas (off-brand sodas). The event is a recession. The National Bureau of Economic Research (NBER) that dates the business cycles in the United States has recently announced that as of February of 2020, the country entered a recession ( https://www.nber.org/cycles/june2020.html ). Analysis: since off-brand sodas are inferior goods, then I will expect that a reduction of income that usually goes with a recession will create an increase in the demand for inferior goods. For that reason, I will expect the demand for off-brand sodas to increase; the demand curve will shift to the right and most likely in a resulting the equilibrium price/quantity of off-brand sodas will be higher.
Your turn! Do not use example given!!
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