Analyzing Supply and Demand

1. Select a good or service with which you are familiar Create three to four (3-4) page paper in which you: Explain how changes in two (2) factors that affect the supply of your good (e.g., input costs, number of suppliers) affect the equilibrium quantity and price of your good or service in the market.

2. Discuss the characteristics of your good (e.g., is your good a necessity or luxury?) and determine if the good or service you have chosen exhibits elastic, inelastic, or unitary elastic demand. Justify your answer.

3. Suppose that the government decides to introduce a price floor in the market. Discuss what will happen to the quantity of the good in your market, who would benefit, and who would lose from the decision to implement a price floor.

4. Include three (3) external peer-reviewed sources to support your position.