BackgroundCourse Learning Outcome: Students will be able to use the supply and demand model to determine market prices and quantities.On the most basic level, this learning outcome simply requires reading a supply and demand schedule or diagram and finding an equilibrium. However, the true power of supply and demand is in its ability to explain or predict changes in prices. Many of those trained in economics end up in doing forecasting, where part of the job is to make predictions about the pricing of products. This paper is designed to give you some practice in that style of analysis.Instructions/SpecificationsYou will write a paper of at least 500 words that will predict a change in prices for a good of your choice. A satisfactory paper will:Have a body of at least 500 words (not including the works cited page or any introductory material title, name, etc.).Have at least 5 works cited (Note: works cited need to actually be cited in text.).Have a Works Cited page using MLA format, APA format, or something similar.Describe the product and its current price.Predict whether a shift in demand or supply will be more important in driving the price from now to one year from now, and include logically consistent reasons why.Provide a clear prediction for the direction of change for the more important shift, and include logically consistent reasons why.Provide a clear prediction for the price one year from now that is consistent with the reasoning in the paper.Use key terms (supply, demand) precisely.After the Works Cited page, have a paragraph starting with “From writing this paper, I learned that…”(Optional) After the “I learned” paragraph, you may submit up to three specific feedback questions. If you choose not to submit these questions, I may limit my feedback to simply explaining why an unsatisfactory paper was deemed unsatisfactory.Important Note:You should NOT simply look up and repeat what someone else has predicted! The goal is to make your OWN prediction based on your research and an understanding of supply and demand.
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