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Applications of the Supply and Demand Model Think about a real-world situation you can explain using the supply and demand model, and write about it. This example may be based on your own personal experience, your employment, or on something you’ve read. It should be based on actual events, and not fictional (like the examples we used in class). In your writing, first define the market you are interested in, and briefly explain what is behind the supply and demand curves in that market. Remember, "market" generally refers to something broader than a specific brand (e.g., new cars, not Ford cars). Then, describe some events which are affecting equilibrium in that market, how they are affecting the market’s supply or demand, and how the equilibrium price and quantity are changed as a result. Your analysis should agree with reality: if the model predicts prices increasing, is that we actually observe? Include at least one supply and demand graph to illustrate your text. Type, and pay attention to the clarity, organization, and correctness of your writing. The graph may be hand drawn and on a separate page, but make sure your text makes clear what the graph is illuminating. If you base any of your work on something you’ve read, include a citation of your sources.

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