Here's anexplanation and graphs of a competitive market.

1. Provide examples of a variable that affect the supply curve and a variable that affects the demand curve (see the textbook and the videos for demand shifters and supply shifters - factors that affect demand or supply).

2. Think of a product or service that use in your everyday life or workplace. Describe how the supply or demand of this product might be changed.

3. Discuss: What does equilibrium price represent? What factors cause equilibrium to change and why is it important that prices are flexible in our economy? After reading about price ceiling and price floor, do you think the government should control the level of prices for products that are really important such asgasoline?