Microeconomics Econ Brief (150 points)
Case study: “Good X”
Assume in a simple example that two changes occur simultaneously in an economy which produces “Good X”
The economic changes that occur in the market are: (1) An increase in the number of seller/producers in the economy who make “Good X”, and (2) An increase in the number of consumers who purchase “Good X”
Assume that this is a competitive market, what will happen to the market selling price and the market quantity that is bought and sold in the market for “Good X”?
Finally, please cite an example from the news of a current event in real life that relates to the one of the economic changes occurring ( ie. An increase in the number of consumers in the market or an increase in the number of sellers/buyers in the market) affecting “Good X” above and be sure to explain why it relates.
Use supply and demand analysis to demonstrate your answer and be sure to provide the rationale behind and discuss any interesting observations or outcomes.