This activity connects supply and demand to the real world. Students will read articles that show changes in supply or demand, or simply analyze the articles' summaries and translate the content to the analysis of demand, supply, quantity demanded and quantity supplied, and market equilibrium.

A couple of areas to understand when completing your charts:

A demand curve shift refers tofundamental changes in the balance of supply and demand that alter the quantity demanded at the same price. For example, you may be willing to buy 10 apples at $1. If the grocery store drops the price to $0.75, then that demand curve movement means you might buy 15 apples instead of 10.

The equilibrium price isthe price at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves. A surplus exists if the quantity of a good or service supplied exceeds the quantity demanded at the current price; it causes downward pressure on price

Hyundai's car sales are affected by lower gas prices. E Lower Gas Prices Affecting Hyundai's Car Sales Equilibrium Supply (Up or Market What Changed? Demand (Up or Curve shift price and Down?) Down?) quantity Small cars SUVS