Read the article An increasingly precious metal Preview the document.

. Read the article An increasingly precious metalPreview the document. After reading it, analyze it using the three-step process of analysis discussed in class. In your analysis, make sure you identify the market, i.e., the commodity that the article reports on, identify the determinants that help explain shifts in demand and/or supply and discuss the changes in the context of the events reported. You must write a well-written paragraph where you cover all the elements of the three-step process of analysis. In addition, if you conclude that both curves are changing, then you must address the issue of the magnitude of the change in order to assess what is the most likely outcome to what otherwise would have been an unknown change. Do not write your answer by individually answering the questions in the three-step process of analysis, remember, you are telling a story.

2.

Draw a theoretical diagram where you depict the changes that you describe in your answer to the first question. Your diagram must be consistent with your answer to question 1. Label the diagram appropriately and clearly show the direction of the demand and/or supply shifts and the changes to the equilibrium. Your diagram must clearly show whether prices and quantity are increasing or decreasing. Save your work in *pdf format and upload the *pdf file here. PDF’s are preferred, if you upload any other format and I cannot open it, you will not receive credit. DO NOT EMAIL ME YOUR DIAGRAM, YOU MUST UPLOAD YOUR ANSWER HERE. You will be evaluated using the following criteria:

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Correct labeling
Correctly depicting shifts
Correctly identifying the equilibrium points (original and new)
Showing changes to price and quantity
The overall presentation, use of colors, ruler, labeling, etc.

 

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