Question;BUSN 5260;Current Economic Analysis;Week 3: Personal;Assignment;Some students have difficulty understanding the laws of supply and demand and;the difference between changes in demand (supply), which are caused by changes;in the respective determinates of demand or supply, and changes in quantity;demanded (supplied) which result from changes in the price of the good or the;service.;Before you complete this assignment, I suggest that you;again review Chapter 3 and my lecture material provided this week. There are;some basic principles which must be followed when constructing supply and;demand graphs, for example, price is always on the vertical axis and output;(quantity) on the horizontal axis.;I also strongly suggest that you review the website Economic;Basics: Demand and Supply and the videos Supply & Demand Graphing Using Excel;and the Macroeconomics;for MBA YouTube Channel, from the Internet which can be found through these;links.;If you have questions, remember to post them to the General;Questions area of the Discussion forum.;Problems;Problem 1For each of the following draw a separate diagram to demonstrate the;answer. (Hint: Remember the difference in a change in demand [supply] and a;change in quantity demanded [supplied]. Don't shift both curves unless;appropriate). Describe what happens to equilibrium price and sales. Explain why;or why not this makes sense in the real world.;-A-;Show the effect on the U.S. new construction residential housing market in the;event of a severe economic recession.;-B-;Show the effect on the U.S. air travel market if American Airlines unexpectedly;folds (ceases operations) overnight.;-C-;Show the effect on the U.S. domestic car market if the price of foreign cars;increases due to an exchange rate shock.;-D-;Show the effect on the market for large SUVs if the price of gasoline in the;U.S. comes to rest at greater than $4 per gallon.;-E-;Show the effect of setting the price of Super Bowl tickets at a price lower;than equilibrium price.;Internet Questions;Question 1Visit: CNN.com;Go to www.cnn.com and do a search using keywords: crude oil;prices. Find an article which discusses recent changes in the price of crude;oil. I want you to 1) in one full page, discuss the reasons stated in the;article explaining why the price of crude oil has changed, and 2) use supply;and demand graphs to illustrate what is being discussed in the article.
Paper#54646 | Written in 18-Jul-2015Price : $35