Microeconomics Writing Project Part I
Pick a company that produces a good or service. Choose a company that:
⦁ Interests you. Consider companies for which you might want to work or where a family or friend works. This can be a local, national, or international company.
⦁ Is not too diversified. For example, Philip Morris would be a bad choice because they are really several kinds of companies all operating under one name. To determine if your company is too diversified ask yourself, “In what industry does my company compete?” If you can think of more than one industry in which your company competes, then it is too diversified.
⦁ Has been in existence for at least 10 years.
⦁ Assume all goods/services are produced and sold in competitive markets.
⦁ Write a 200 word introduction of your company and what it produces.
⦁ Describe at least four factors that could affect the demand of a good or a service that the company produces. Show graphically the impact of each factor on the market for the good or service. (12.5 points each)
⦁ Describe at least four factors that could affect the supply of a good or a service that the company produces. Show graphically the impact of each factor on the market for the good or service. (12.5 points each)
All shifts should be tailored to this good or service rather than just a list of factors from the textbook.
For this part of the project you will
⦁ DRAW eight graphs, four with demand shifts and four with supply shifts. Start each graph showing the market in equilibrium
⦁ Write eight paragraphs (1/2 page each) explaining each shift and the impact on the equilibrium price and quantity of the good or service. Be specific – why was more/less demanded? Why was more/less supplied?
Total length = 9 pages:
1 page for 200 word introduction
8 x 1 page with a graph showing the impact of the change in supply or demand and explanation for each shift. For more information on A Company Producing Service visit this: https://en.wikipedia.org/wiki/Service_(business)
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