The objective of this exercise is to identify how prices are arrived in the market. The market

observations of the three variables price, demand and supply over the time period is to familiarize

with shift and the equilibrium attained. The demand / supply / price setting should be unique to the

product / service you select. Your ability to critically analyze the variables would be given merit.

Exercise

Identify any product or service of your choice and analyze the price for the last six time periods and the

quantity demanded for the same. The time periods can be monthly, quarterly, bi annual or annual.

Reason out the factors that influence the demand directly and indirectly. How is the demand decision

made?

Due to think the supply factors too, influence the price, if so find out the quantity supplied for the

observed time periods.

What are reasons for the price behavior? Is it supply or demand dominated?

Do you think the product / service of your choice can influence other economic activity?

How do you think your product / service is unique in the economy?

In what type of market does it operate? What is its market share and who is the dominant player?

With regard to the profit maximization output and price, how do you think the theory differs from the

market condition.