In Chapter 5 & 6, the course material discussed the concepts of elasticity (and variations of inelasticity, cross elasticity and income elasticity,) the effects of price controls on elasticity, and the effects of changing tax burdens. Many of these ideas are playing out in front of our eyes with all the significant ups and downs in the economy, prices (inflation) and supply chain disruptions. Pick the following topics and think of a real world example of how your example involves and uses these concepts. Be specific about an example, and specific about how demand or supply is effected. Discuss if your example will increase supply or demand and prices.

Remember, use real world specific examples from what is happening in America today. It is not important to have specific numbers but understand the effects in general terms. Cite the principles you learned from Chapter 5 & 6.

1 - Think of a product that many people buy every year and discuss how the supply chain disruptions has effected demand, supply, and prices. Be alert to cross elasticity for your example. Discuss with the "equilibrium" price has changed and how.

2 - Identify changes in interest rates and how that is impacting the demand for loans and related products that are financed with loans. Have rates increased, has loan demand changed, and how has that impacted prices for the product typically purchased with loans.