Assume the demand curve slopes downward and the supply curve slopes upward. You should write full sentences and do not worry about drawing graphs.

Pick a product or service for which you have seen information provided.

a. Find information about a change that would influence the demand for your product. Describe the fact and its source. [For example. "My firm produces automobiles. On July 21, the Wall Street Journal reported that the price of gasoline has risen from $3.25 to $3.38 in one month."] Then explain why and how it will lead to a change in demand and predict the change in the market price and market quantity that would result.

b. Find information about a change that would influence the market supply for your product. Describe the fact and its source. Then explain why and how it will lead to a change in supply and predict the change in the market price and market quantity that would result.

c. Describe all of the possible outcomes that might occur if the events in parts a. and b. occurred simultaneously and the conditions under which they would occur.

d. Describe which of the shifts you believe would be the dominant shift and explain what information makes you believe this is the dominant shift.