In: Economics
Select a market for a product or service, then identify at least one critical determinant of demand or supply in that selected market and forecast a reasonable future change in the determinant. These "determinants" are also called "shifters" in our textbook. Explain the changes in equilibrium price and quantity you expect for that market. A graph is not required, however, it is helpful and illustrative that you fully comprehends this week’s material.
For this topic I choose the housing market ,one critical determinant of housing market is the interest rate.The mortgage rates are expected to be low in 2018 which will create demand for housing. If demand increases and supply remains constant, the demand curve will shift outwards and equilibrium price and quantity will increase.
What determinant would an economist say is the main one at play here in the burger market?
We shall consider the Market for Crude oil for this exercise:
Critical Determinants of demand of Crude oil:
Critical determinants of Supply of Crude Oil
Future changes in the determinants of Demand:
Future Changes in determinants of Supply:
Therefore, as a consequence of change in above determinants, equilibrium price will decrease and quantity supplied will increase