1

This Is Your Title: It Should Be Descriptive but Succinct

Your Name

Department of ABC, University of Wisconsin – Whitewater

ABC 101: Course Name

Professor (or Dr.) Firstname Lastname

Date
 2

b. In the second case, the cold in the winter causes heat loss. The cold in the winter

increases the consumption of fuel as there is more energy necessary for running a vehicle. In

other cases, we use natural gas to heat our homes, generator for extra power for heating

equipment’s. These add up to inflate the consumption of oil. In this case the demand curve D1

shifts to the right.

In the figure above, the demand seems to increase as it shifts towards the right. The

supply curve intersects the demand line just like in the case a but this time making another new

equilibrium point as the price and quantity both increases from P1 to P2 and Q1 and Q2

respectively.

c. The discovery of major oil source will increase the quantity of the oil. As this new

source of oil adds into the market, the market has increased quantity for sales. This case doesn’t

affect the demand as there is no new need for oil in the market. The supply however increases.

This causes the price to fall down.

In the above figure, the demand curve D1 is constant while the supply curve shifts

towards the right indicating a rise in supply. A new equilibrium is maintained in the market at the

point where demand curve D1 meets new supply curve S2 where price falls from P1 to P2 while

quantity rises from Q1 to Q2.

d. The economics of a major oil consuming countries, like Japan slowing down will result

in less use of energy in overall. There will be less consumption of energy like natural gas,

electricity or coal. In our case the market of oil will see a fall in demand, as the people will not

be needing to consume more oil.

As in the figure, the supply curve remains constant as S1. The demand curve shifts

towards the left as D1 to D2. This will see a new equilibrium in the market as the price drops

with the quantity as P1 to P2 and Q1 to Q2 respectively.

e. If the war in Middle- East disrupts the oil- pumping schedules, there will be

irregularities in the amount of oil arriving in the market. This will be hampering the distribution

market. There will be a decrease in the supply of the oil. As there is less supply of oil in the

market the price will naturally go up.

If the distribution pattern of oil fluctuates, the irregularities will lead to less oil stock

meaning the supply curve moves towards the left as S1 to S2 indicating less supply in the

market. The demand curve D1 forms a new equilibrium with the new supply curve S2 as the

price increases from P1 to P2 while the quantity decreases from Q1 to Q2.

f. If most of the houses have natural insulation, there will naturally will be less

consumption of oil. There will be less demand of oil in the market if the landlords installed

insulation in the house themselves, as there will be less use of heating equipment’s like gas

heater and mechanical A.C.

In this case the demand curve shifts towards the left indicating a drop in demand of oil.

The supply remains the same and this time there will be a new equilibrium formed as the price

and Quantity both decrease from P1 to P2 and Q1 to Q2 respectively. This figure is similar to the

case number four.

g. If the price of the solar energy falls radically, we will see a rise in use of this energy

instead of oil energy. This has a direct effect on the market of oil energy. The market of oil

energy will take a hit meaning the demand will fall dramatically. The demand curve shifts to the

left as in case six.

As seen in the figure, the supply curve meets the new demand curve D2 at an equilibrium

where price and quantity both fall as in case six.

h. The invention of a new plastic by chemical companies would have no impact on the oil

market hadn’t they used the raw material as oil. As per the case, the plastic is selling more. This

will likely increase the demand of oil as there will be rising production of this plastic by

chemical companies. This will increase the demand of oil in the market and subsequently

increase the price.

As per the figure, the demand curve D1 shifts to the right as D2 and the new demand

curve meets the supply curve S1 at a new equilibrium point where price and quantity both

increase from P1 to P2 and Q1 to Q2 respectively.

Market equilibrium

In any market, the supplier looks for a higher price for their goods while the consumer

looks for a lower price for the goods that they are purchasing. Demand for a product relies on

many factors and one of them is price. If the price is lower, there will be an increase in demand

for the product. Market equilibrium is a market state where the supply is equal to the demand in

the market. It means that for that exact price for the good the demand meets the supply. Since the

market will see excess amount of goods in supply if the price is set above equilibrium and less

stock of the good for demand if the price is lowered than equilibrium, the market tends to be in

equilibrium as the supplier tends to clear the stock but only for the right price. For example, a

bakery is selling a cake for $5 apiece. The stock is of 50 but the demand is only for 10 at that

price. The bakery now lowers the price to $4 where the demand sees a rise but not enough. But,

when the price is set to $3 a piece, the demand meets the supply. This market equilibrium is

reached for the product.

Conclusion

The paper discussed the effects of price and quantity factors directly affecting

supply and demand and vice versa. Certain conditions in the market cause the market to shift

from one price to other for the same price. However, we can see that for every product, the

market equilibrium is always reached. The market equilibrium is the best price to trade for both

the supplier and the consumer as the supply and demand meet at this exact price point.
 6

References

[More References examples for your assistance here]

American Psychological Association. (year). Article title: Capital letter also for subtitle. Name of

Journal, volume#(issue#), pg#-pg#.

Author(s) of essay or chapter. (year). Title of essay or chapter. In F. M. Lastname (Ed.), Book

title (pages of essay or chapter). Publisher. https://doi.org/10.xx.xxxxxxxxxx

Freud, S. (year). Article title. Name of Journal, volume(issue), pages.

https://doi.org/10.xx.xxxxxxxxxx

Pavlov, I., Jung, C., & Freud, S. (year of last update, month day). Webpage title. Source or

hosting webpage. https://www.someurl.com/full/address

Ramirez, A. T. (year). Book title. Publisher. https://doi.org/10.xx.xxxxxxxxxx

Skinner, B. F., & Ferster, C. B. (year). Article title: Capital letter also for subtitle. Name of

Journal, volume#(issue#), pg#-pg#. https://doi.org/10.xx.xxxxxxxxxx

Stein, D. J., Friedman, M. J., & Blanco, C. (Eds.). (year). Book title (edition, Vol. #). Publisher.

https://doi.org/10.xx.xxxxxxxxxx