Week 2 Case Study: Supply and Demand Overview A market exists whenever buyers and sellers meet to exchange goods andHuman Computer Interaction services. A mall is a market, a street is a market, your classroom is a market, a garage sale is a market, and even the airplane you ride is a market. Markets are everywhere. Their primary purpose is to get suppliers (producers) and demanders (buyers) together to sell and buy at a price they both agree on. Market demand represents the sum of the individual demand for a commodity (a good or a service) from buyers in the market. On the other hand, market supply represents the total quantity of a commodity that producers are willing and able to provide to the buyers at a given price level. Market equilibrium occurs where the quantity supplied equals the quantity demanded, and the market price (equilibrium price) is set at that quantity (equilibrium quantity). The equilibrium price and equilibrium quantity are not static, however, meaning that they change due to changes in market demand or market supply. A commodity or an idea might be a “hot item” and very popular at one point in time where people are willing to pay a high price for it, and producers will be willing to produce more of it because it is profitable. Smoking a cigarette at one point in time was considered a symbol of “a tough man” and smoking was acceptable everywhere, including inside hospitals! But what has changed for cigarettes? Whenever the demand for a commodity rises or declines, and whenever the production of a commodity expands or shrinks, it is certain that at least one market force or a set of market forces have taken place to cause this change. At the same time, whenever market demand and/or market supply changes, the market price and the quantity of that commodity available in the market changes, too. Dynamic and free markets are constantly changing due to changes in factors (determinants) that affect either demand, supply, or both. Analyzing and understanding the forces behind the shift in market demand and market supply determines the growth pattern of the commodity. Assignment Description In this assignment, we are going to analyze the changes in market demand and market supply for a commodity (a good or a service). In addition, we will also analyze how the changes in demand and supply affected the market price and production of this commodity. To do so, we will are going to address the key factors (determinants) that have caused the shift in demand and/or the shift in supply. The goal here is to provide an objective analysis of the forces that have caused this change in order to better understand the behavior of the market and to determine the potential growth or decline for this commodity. Some of the commodities that have experienced a drastic change (an increase or a decrease) in supply and/or demand in recent years are organic foods, cage-free eggs, social media, higher education, online education, healthcare services, online banking, online shopping, DVD players, digital cameras, fidget spinners, health clubs, bottled water, landlines, Cash for Gold, and fried food. You could use one of these commodities for your study or choose one you are familiar with or prefer. To start, select a commodity that you wish to analyze to determine changes in its market demand, market supply, equilibrium quantity (output), and equilibrium price. Your research should be structured with consistent and clear thoughts. It should be supported by facts and data, and you must base your results on these facts. Your conclusions should be thorough and based on your findings and understanding of supply and demand determinants.