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This is not what I asked for I could have done that myself. Please look over what I asked and advise the direction I should take with this.
Equilibration is the process of moving between two equilibrium points as a result of some change in supply or demand.
The law of demand states that an increase in the price of a commodity will lead to a fall in the
demand for the same commodity, given other things remaining constant.
Consider AS AN EXAMPLE an economy which exports sugar and is at equilibrium at e, at e price is given as P and Quantity of sugar demand and supplied is Q, if income of the rest of the world increase then the demand for sugar exports would increase in contrast to the existing demand for exports i.e. the demand curve for sugar would shift rightwards from DD to DD1 (DEMAND CURVE WILL SHIFT). Therefore at equilibrium e there would be excess demand for sugar the
good demand would be Q which the good supply would be Q only in other words at,
existing equilibrium e demand for sugar would be greater than the previous level of demand
for sugar due to increase in consumer income and constant supply for the good at P, thus at
the existing level of price the market experienced shortage of sugar supply.
A good way to start for your assignment would be to find a country that produces a commodity very valued CURRENTLY by other countries (example: corn in Brazil). Then you can look at the MAIN BUYER country for this commodity (which in this case will be the USA) , and compare both of them. If corn prices in Brazil go UP, demand in the USA will do down, which in turn will bring the equilibrium price of corn in Brazil down (due to less demand).
I hope this explanation helps you. I am not able to write the assignment for you, but I will be glad to help you with any more specific questions you may have. Please let me know if you need further help. Please do provide a positive rating if you are satisfied with your answer. My goal is your complete satisfaction! Thank you!
So with this corn did the supply in change happen due to the result of real world events. I am just trying to get this done and find a starting place.
SSWexpert : You are very much correct. Think about it this way and tell me if it makes sense to you, and if not i will explain further: Corn is used to make alternative fuels. With the need for alternative fuels being so elevated in the last few years,specially in the developed nations, the demand for corn is very high (one of the reasons why corn is so expensive at the grocery store compared to just a few ears back). Why is the need for corn to make alternative fuels so big currently in the developed world? Examples: defense spending and actions, industry growth, etc etc. Due to globalization, if countries are tied due to trade and commerce, what happens to one of them will affect the other one.
SSWexpert : Does this make sense?
SSWexpert : Please rate if you are satisfied, or feel free to continue asking as many questions as you need related to this topic. Thanks again for allowing me to help you!
Ok it makes since. One more question is the corn industry part of a free market because has to be about something in a free market
SSWexpert : In my opinion it is. A free market by definition occurs in an industry where product can be sold and bought without any government control. However, there are little to none free markets per definition because globalization comes with inevitable government rhatipns (taxes, import quotas, etc etc). That is the reason why "free market" can now be defined as markets where supply and demand can move freely when a factor in the market changes (like price, for example). You can check with your professor to be sure he will consider it essentially a free market (corn is a commodity that can be traded on the open market). If I was grading you, I will consider it free market, for the reasons I explained.
SSWexpert : Like I said, a true free market is very hard to find now, and even more unlikely when your professor is asking for "work events", which implies that the market you are focusing on will cross nation borders.
SSWexpert : I truly hope that I was able to be of help to you. If I was, positive feedback will be greatly appreciated. Please feel free to follow up with me anytime and I will do my best to help you!!