Assignment 4

"well done is better than well said"

Now you are well on your way to mastering the supply & demand model that economists use to explain price movements.  To convince yourself (and me) that you have mastered the skill you are to find an article that you can translate it into a S-D diagram.  For example, an article entitled "Asian crises hits American farmers" would be best represented by the following diagram.  The decrease in the demand for exports of American grain would result in an inward shift in the demand curve. The result would be a decrease in the price of grain (P1 to P2).