Question

Think of a relevant example in your own life of how a change in the market (including information, preferences, technology, price of alternative goods, regulations, taxes, etc.) has shifted either the supply or demand of a good. How did this change affect the market equilibrium for that good or service? Explain.

Answer 1

Lets take an example of iPods or the Walkman. When they were released back in 2001 the price was high and the demand was limited. then the technological inventions made the smartphones and more and more or it. They started getting better and much easier to operate.

With new tech and handy cellphones ready to play songs, the demand for the iPods decreased i.e. the demand curve shifted to the left and the price decreased, the new equilibrium for these goods are at a lower price and lower quantity as compared to 2001.