Write an essay in which specific economic principles are explained and applied to a newspaper article. A photocopy of the article must be attached to the paper.

Assignment:

Consumer behavior and the demand curve. The article you chose should focus on the market for a specific good where demand has shifted. It should then explain what is happening to the demand curve using the idea of consumer behavior.

The structure of the essay should be as follows:

1. Introductory paragraph which clearly specifies what market will be discussed, why the demand is shifting, and in which direction and briefly summarize the article.

2. Explanation of the model of consumer behavior and how it is related to the demand curve. You must explain in your own words what the model of consumer behavior is and how it is used to describe the demand curve.

3. Apply the model to your article. It would be best to discuss what in the article led you to your conclusions about the source of the shift in demand. You must include at least two graphs, a supply and demand graph, which shows how the demand curve is shifting, and a diagram of the model of consumer choice.

4. Conclusion.