You have been asked to discuss the differences between the microeconomic definitions of supply and demand and the macroeconomic differences of aggregate supply and demand. Discuss what determines supply and demand and aggregate supply and aggregate demand. Explain what causes movements along the curve and shifts in the curve for supply and demand and aggregate supply and aggregate demand (make sure that you include price as a variable). Include whether this is an example of the microeconomic definition of supply and demand or the macroeconomic definition of aggregate supply and demand. Most importantly, did this cause a shift in the curves or a movement along the curves? What happened to equilibrium price, supply, demand, aggregate supply or aggregate demand? Describe your graphs.
After Hurricane Katrina, what happened to the price of fish?
After the development of the microchip, what happened to the price of computers?
After the government raised tariffs on imported cheese, what happened to the price of domestic cheese?
Polyester suits have become trendy again. What happens to their price?
Internet auction sites are becoming more popular, and people are using them more and more.
A new health report came out that said red wine lowers cholesterol.
The government raises taxes.
Inflation increases.
Immigration laws are relaxed.
The government increases spending.