Understanding The Economics Of Business

1200 words total. 3 APA cited references and reference list. No plagiarism!

1. In a narrative essay demonstrate your understanding of supply and demand by describing the difference between a shift in demand and a movement along the demand curve. Do the same for supply. Then, explain each of the demand shifters and provide an example of each. Include in your explanation the effect on equilibrium price and quantity. Do the same for supply shifters. Finally, explain how a market self-adjusts if prices are too high or too low and describe the effect of price controls that prevent prices from adjusting.

Use headings to help separate your answers.

250 words total. 2 APA cited references and reference list. No plagiarism!

Please answer all parts of the following questions. Please number and letter your answers.

1. The prices of goods and services tend to fluctuate over time.

(a) Do some research to find out how gasoline prices in the U.S. have changed over the last two years. What demand and/or supply factors have caused the price of gasoline to change?

(b) Since March 2020, the prices of anti-septic liquids and facial masks are higher than what they were in 2019. What demand and/or supply factors have caused the prices of these goods to rise?

2. In the past, governments in various countries have set price controls on rents and the price of milk. Essentially, government fixed a price that did not allow landlords to charge rents above a certain level or stores to sell milk above a certain price. Such price controls may still be used today in some countries.

(a) What is the government trying to achieve or who is the government trying to help by setting these maximum prices?

(b) Do you think that such price controls are a good idea? Briefly explain.