In Chapter 3, we learn how supply and demand for a good or service can change in response to changes in certain variables, as well as how supply and demand interact to determine the market equilibrium price.
Please describe a price change you’ve noticed in the last few years.
Explain why the price changed in 1) above using the supply and demand model.
Summarize your explanation in one sentence by stating what you believe happened to supply and demand, why you believe this happened, and how this interaction resulted in the price change you observed. If both curves are moving, you must explain the magnitude of each shift in order to justify the price change you observed.