Supply and Demand Simulation
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Supply and Demand Simulation
Complete the Supply and Demand Simulation located on the student website.
Write 700 – 1,050 word paper using the content of the simulation and your text resources to address the following questions/objectives:
Explain/Define the Law of Demand and the Law of Supply.
Explain (separately for both Demand and Supply) the difference between 1) a shift in a curve and 2) a movement in along a curve. Use the following terminology (as an example for Demand) a shift in Demand or a change in the quantity demanded. (Meaning there are two separate concepts to discuss for Demand, and two for Supply as well.)
Identify at least one shift of the supply curve and one shift of the demand curve from the simulation to use to answer the following points:
For each shift, analyze how it would affect the equilibrium price and quantity – explain WHY.
What caused the shifts?
Explain how the price elasticity of demand affects consumers’ purchasing decisions, also explain how a firm can use price elasticity of demand information in it’s pricing decisions/strategy.
