l choose an industry or current/proposed government policy to follow throughout the semester. I encourage you to read a current periodical, which provides careful industry/policy analyses, on a regular basis throughout the semester. Periodicals that you might find of particular value include The Economist, The Guardian, The Wall Street Journal, and The New York Times. You should not limit yourself to these sources to obtain information on your topic.
The objective of this first writing assignment is for you to describe and analyze the industry or policy you are studying using the supply-and-demand framework. You should begin by discussing the foundations of supply and demand for the product or service in this industry or the products or service that is affected by the policy.
For policy, you must first identify what market is impacted by the policy and then who are the suppliers in the relevant market and who are the consumers (demand side) in the market.
In your supply discussion, address the following questions and topics:
· What products or services are provided in the industry (or impacted by the policy)?
· Who are the key suppliers in this market?
· For industry:
o Describe the basic production process.
o Identify key inputs whose prices influence the quantity supplied by producers.
· For policy:
o Do the suppliers favor the policy? Why
In your demand discussion, address the following questions and topics:
· Who are the typical consumers?
· Is this product (in the market of interest) a normal or inferior good?
· Identify relevant complements and substitutes for this good or service.
· For policy: Do the consumers favor the policy? Why?
You are expected to identify two current trends or recent events in the industry that will likely impact supply or demand in this industry in the near future. You should demonstrate how you expect the two trends or events to impact the price and the quantity exchanged of the product or service. Your discussion and explanations should be clear and concise. You should illustrate your predictions with supply-and-demand graphical analysis.
You are expected to identify one recent change or proposed change in the policy that will likely impact supply or demand on some market in the near future. You should demonstrate how you expect the policy change to impact the price and the quantity exchanged of the product or service. Your discussion and explanations should be clear and concise. You should illustrate your predictions with supply-and-demand graphical analysis.
You must also identify one counter argument or alternative to the policy/proposed policy.