Econ 202 Article Assignment # 1
1. Find, copy, and summarize a recent article from a periodical (not a press release, government report or from Wikipedia) about a specific good or service whose price is rising or falling. This can be a particular company (Ford cars) or class of goods and services (Corn, taxi cab rides). There are several goods and markets the article cannot be about, including: the movement of the stock or bond market, price of oil or gasoline or the housing or house rental markets. It also cannot be about a product being supplied or price controlled by a government or non-profit entity. If you are unsure whether a particular good qualifies then ask me.
A. Give the title of the article
B. Give the name of the publisher or website
C. Give the name of the author
D. Give the date the article was first published (remember it should be less than 3 months old)
E. Summarize the article
F. Include a copy of the article
2. Apply economic principles to the article.
A. Describe in words, using the effects discussed in class, the cause of the change in price. Is it, for example, an income demand effect or a technology supply effect or is it some other effect. There might be multiple effects name as many as you can identify. What is behind these changes (i.e. What is causing them)? Do these changes seem temporary or long lasting and why do you say this?
B. Draw a single Demand/Supply graph showing the original equilibrium followed by the changes caused by the effects described above. Include enough explanation to make the graph is clear, label axis, etc. This theoretical graph does not have to contain actual numbers, but you will have to clearly indicate changes, including the new equilibrium. You do not have to show the effects of all changes identified above, but be clear on which changes you are showing.
C. Given above, what we would expect to happen to equilibrium quantity as a result of the price change. Include direction, and also the amount (a lot or a little) of change. What would you need to know the amount? Using class concepts explain why you think the change will be large or small..
D. Identify who should be made happier and who should be made less happy by this price change and explain why this is so. This can include groups not mentioned in the article.
3. Part of your grade will depend on finding an article you can say something about, beyond short sentence answers. For instance, an article about price movements of a commodity over time with no explanations of causes should be avoided.
4. The assignment needs to be typewritten and presented in hardcopy. Identify each section (1.A., 2.B., etc.) as I have indicated which makes your papers easier to follow.