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Posted: April 20th, 2022

In this assignment, you will be applying the reading and research you have

Module 2 – Case
Supply and Demand
Assignment Overview
In this assignment, you will be applying the reading and research you have done to answer questions dealing with various aspects of supply, demand, and equilibrium. This is a multi-part assignment, so make sure that you have addressed each question or topic. The best way to approach this assignment is to prepare your responses in outline form following the order of each question/topic. This will help you keep track of your responses.
Case Assignment
After reading the materials from the Background page and other sources you found on your own, address the following questions in an essay or short-answer form:
1. In some cases, the government can intervene in the market when the equilibrium price is too high or low. For example, a price ceiling is a legal maximum price that can be charged in a particular market. Do some research on your own. Here are some sites to help you get started:

What Happens to the Equilibrium Price When Quantity of Supply & demand Shifts Upward? Chirantan Basu, 2018. Retrieved from https://tinyurl.com/y8qz8v8o (https://smallbusiness.chron.com/happens-equilibrium-price-quantity-supply-demand-shifts-upward-36644.html)

Price ceilings and price floors: how does quantity demanded react to artificial constraints on process? Khan Academy. https://tinyurl.com/yaxj34ym (https://www.khanacademy.org/economics-finance-domain/ap-microeconomics/ap-supply-demand-equilibrium/ap-deadweight-loss-tutorial/a/price-ceilings-and-price-floors-cnx)
a. Is a price ceiling set above or below the market price?
b. Give an example of a price ceiling and discuss some disadvantages and advantages of this type of government intervention.
2. An art museum raises its admission price, and ends up with a decrease in its total revenue. How could you explain this situation to the museum director?
3. Suppose Billy drinks two cups of coffee a day no matter what the price. What does this mean in terms of supply and demand equilibrium?
4. What are the main determinants of equilibrium of demand and supply? Which is likely to have more of an impact on supply and therefore market equilibrium: the demand for orange juice or the demand for a particular brand of orange juice?
Assignment Expectations
Use concepts from the modular background readings as well as any good quality resources you can find. Cite all sources within the text and provide a cover sheet, and a reference page at the end of the paper.
Length: 4–5 typed pages; double-spaced, 12-point Times New Roman font
The following items will be assessed in particular:
a. Your ability to understand an application of supply and demand.
b. The use of some in-text references to the modular background material.
c. The essay should address each element of the assignment. Remember to support
your answers with solid references, including the case readings.

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Case Study (Module 2)
Overview of the Assignment of Supply and Demand
You will use what you have learned from your reading and research to answer questions about supply, demand, and equilibrium in this assignment. Because this is a multi-part assignment, ensure that you have addressed all of the questions and topics. This assignment is best approached by writing your responses in outline form, in the order of each question/topic. This will help you keep track of your responses.
Case Assignment
After reading the materials on the Background page and other sources you discovered on your own, write an essay or a brief response to the following questions:
1. The government may intervene in the market if the equilibrium price is too high.

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