Question#1
Take a few minutes to think of specific examples of changes in ceteris paribus conditions also known as "determinants of demand". Write down one example for each of the five determinants of demand. For example for "taste and preferences" you might consider the change inpreference for healthier lifestyles. As a result, people are choosing to eat organic foods (demand curve for organics shift outward to the right, increase in demand) and fewer genetically altered foods (demand curve shifts inward to left for non-organic, decrease in demand). Full credit requires one example of each determinant of demand for a total of five examples.
question#2
can you think of specific examples for three of the determinants of supply listed above? For example, the development of a faster microchip (Technology) that increases productivity would cause a shift of the supply curve outward to the right as the firm would be able to produce more at every price.
question#3
Take out a sheet of graph paper, a straight edge (ruler) and a pencil. Graph the demand and supply ordered pairs above. In economics, the convention is always to place the Quantity on the horizontal axis and Price on the vertical. Construct your graph; at the origin (where the two lines meet) place a zero. Label the horizontal axis as "Quantity of Pairs of Socks" and number the intervals (equal distance apart) from 0,1,2,3,4,5.Label the vertical axis "Prices" and beginning with the 0 input prices of $1, $2, $3, $4 and $5.Starting with the Quantity Demanded column and prices, plot the ordered pairs and draw a line through the points. For example you should have a point where Quantity demanded=1 pair, and Price=$5, a second point where Quantity demanded=2 pair, and Price=$4 and so on. Once you have all of the points in draw a line to connect the dots. Label this line DEMAND; this is your demand curve.Do the same with the supply side ordered pairs. Draw a line to connect the dots. Label this line SUPPLY. This is your SUPPLY curve.You should now have a graph where the two curves intersect. At this intersection, put in the coordinates for Quantity and Price like so: (Q,P)Take a photo and submit here on the Discussion Board.