Question

Think of a relevant example in your own life of how a change in the market (including information, preferences, technology, price of alternative goods, regulations, taxes, etc.) has shifted either the supply or demand of a good. How did this change affect the market equilibrium for that good or service? Explain. Next, find a relatively recent news article (within the past year) to support your finding (the news search feature in Google is helpful with this). If you cannot find an article specific to your example, you may find an article about another similar good or service. Summarize the article and its findings, then include the URL in your discussion post.

Answer 1

Example of a product in my life is chocolate chip cookies.

Ever since cookie monster has been removed from public television sesame street there has been a remarkable decrease in the supply of cookies in households because advertisements affect the market demand and consequently supply decrease.Cookie monster is a muppet on the children television show 'sesame street.'Cookie monster eats a lot of cookies and this affects market demand for it among kids.The article 'Cookie monster teaches self control 'is very educative.It teaches children to have self control . Cookie monster sings "Me want it" "but Me wait"Children learn to control their impulses. Cookie monster eats a lot of veggies and so it teaches healthy eating.

Market equilibrium takes place when demand is equal to supply in the market.However when demand for cookies goes up, the demand curve shifts to the right and new equilibrium is created where price is higher as demand has increased.At the new price quantity demanded is more.

The article is 'Effect of advertising in demand in business simulations.'

This article says that the aim of advertising is to shift demand curve to the right and also to make it less elastic .So advertising influences market condition.