Find three REAL world examples of change in demand (shift in demand) or change in supply (shift in supply) or both. Upload your work in PDF format on BB by the due date.
Mention WHAT, WHEN and WHERE it happened and what were the consequences (i.e. change in price and quantity of the good/service in the new equilibrium). Include a link to the website with the news. Be specific about change in demand/supply and change in quantity demanded/quantity supplied. Be clear and precise. No need to write a one-page essay for each example. Follow the examples below as a guideline.
Below are some examples (you may not use these examples and the examples mentioned on the slides of Modules 5, 6, and 7 as part of your submission).
Example 1: Oil spill in South Korea that began on the morning of December 7, 2007 => destroying half of ocean organisms shifts the supply of fish, shrimps, etc. to the left. In addition, this results in sea population at the head of the food chain carrying long-lasting and large amounts of dangerous chemicals making them unsuitable for humans to eat. This leads to a reduction in demand for seafood. In the market for seafood in South Korea, the new equilibrium quantity is less than the initial. Due to lower supply and demand, the final equilibrium price could be lower or higher than the initial equilibrium price.
https://earthobservatory.nasa.gov/images/8304/oil-spill-off-south-korea
https://en.wikipedia.org/wiki/2007_South_Korea_oil_spill
Example 2: Tsunami in Japan in 2011: Leftward shift of supply of Japanese cars => increase in price of Japanese cars (note that in the market for Japanese cars, this is a shift of the supply curve; but a movement along the demand curve).
if we want to elaborate on this example, due to the increase in price of Japanese cars which are substitutes for American cars, consumers would shift to American cars and demand for American cars increases. This means in the market for American cars, this is a shift of the demand curve.
Check out the link below for more info:
https://www.cbsnews.com/news/how-the-japanese-tsunami-changed-the-auto-industry/
Part of the website: “The disaster disrupted supplies of made-in-Japan models like the Toyota Prius and Honda Fit, as well as the flow of parts for some cars assembled in the U.S. As a result, shoppers who might have bought a Toyota or Honda last year bought Chevrolets and Fords, as General Motors and Ford gained market share.”
Example 3: Hurricane Harvey hitting Texas in 2017: 2.3 million barrels of oil taken out of the market (fall in supply). Price of oil in gas stations almost tripled.
https://www.businessinsider.com/hurricane-harvey-oil-markets-chaos-2017-8
Example 4: legalizing the processing, sale, and consumption of marijuana for personal use in WA in Nov 2012 => increases the demand for marijuana (i.e. the demand shifts to the right) => increase in price and quantity
With some delay, there is an increase in supply, too => decrease in price and increase in quantity
So, we can be sure the amount of marijuana consumed by public after legalization would increase, but we don’t know about the final price of marijuana. (it seems however, that the rightward shift in supply has been dominating the rightward shift in demand and the price of marijuana has decreased in Washington and Colorado after legalizing it.
https://potguide.com/pot-guide-marijuana-news/article/marijuana-prices-in-seattle-and-washington-spring-2017-update/
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Find three REAL-WORLD examples of either a change in demand (shift in demand) or a change in supply (shift in supply), or both. By the due date, upload your work in PDF format to BB.
Mention WHAT, WHEN, AND WHERE IT HAPPENED, AND WHAT WERE THE RESULTS (i.e., change in price and quantity of the good/service in the new equilibrium)? Include a link to the website where the news can be found. Indicate the change in demand/supply as well as the change in quantity demanded/quantity supplied. Be succinct and precise. It is not necessary to write a one-page essay for each case. As a guideline, use the examples below.
Here are several examples (you may not utilize these examples, as well as the examples given on the slides of Modules 5, 6, and 7, as part of your assignment).
