Homework 3 News Analysis 25 Points With Cole Assignment

Question

Homework 3 News Analysis 25 Pointsecon 1020 With Coleassignment Gui Find a news article dated January 1st 2019-April 22nd 2019 that has economic content specifically related to a shift in demand OR supply. Summarize the news article in 4-5 sentences. For the economic analysis, identify the market and specify which determinant of demand or supply is changing. Predict the shift (either demand or supply) and its impact on equilibrium price and quantity, comparing the new equilibrium to the initial one in 5-6 sentences. Graphically illustrate the shift with an image, showing the immediate surplus or shortage, and the impact on equilibrium price and quantity, ensuring the graph complements the written analysis. Check if your economic analysis aligns with the article: confirm what the reporter states or identify where they are mistaken in 3-4 sentences. Provide complete citation information and a link to the article. Save your work as a PDF with a filename in the format “[your first name] [your last name] ECON1020 Homework3” and submit through Canvas by Sunday 4/21 at 11:59 pm.

Dr. Jack HW Helper · Accepted Answer

In early 2019, a significant event that affected the rice market was the increased tariffs imposed by the United States on imported rice, leading to a notable shift in supply. The news article from March 2019 detailed how these tariffs raised the cost of imported rice, which in turn decreased the supply of rice from foreign sources into the U.S. market. This situation provides a clear example of a supply-side determinant affecting the market dynamics—specifically, the determinant of supply related to production costs and international trade policies. The imposition of tariffs caused the supply curve for rice to shift leftward, decreasing the quantity supplied at each price level. As a result, the equilibrium price of rice increased, while the quantity of rice exchanged in the market decreased, reflecting a new, higher equilibrium price and lower equilibrium quantity. This change created a surplus of rice domestically, as sellers were unable to sell the same volume at the higher price without reducing demand, aligning with the supply decrease predicted by economic theory. Graphically, this shift can be represented by a leftward movement of the supply curve on the supply-demand graph, illustrating the immediate surplus at the original price point. The new intersection point between the demand and shifted supply curves shows a higher equilibrium price and a reduced equilibrium quantity. The graph demonstrates the immediate shortages faced by consumers who were unable to buy rice at the rising prices, and the long-term adjustment involves new market equilibria that reflect these supply constraints. This visual representation confirms the predicted impact: higher prices and lower quantities. The economic analysis is consistent with what the report described. The article states that tariffs increased the cost of imported rice, leading to decreased supply, which aligns with the supply shift explained. The article also references the subsequent rise in rice prices, supporti

Homework 3 News Analysis 25 Pointsecon 1020 With Coleassignment Gui

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