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Question: supply and demand v given what you have learned about...

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Supply and Demand v Given what you have learned about 1) demand (and its determinants) and quantity demanded and 2) supply (and its determinants) and quantity supplied work with your group members to analyze this hypothetical situation: There is a shortage of eggs. Consumers are substituting what they perceive to be healthy sandwich spreads for traditional mayonnaise. As a result, the makers of mayonnaise are introducing new sandwich spreads into the market The price of traditional mayonnaise is falling. Why? To help you figure this out, draw a supply/demand graph for mayonnaise for yourself (not to submit to me); then compare your graph with those of your group members. If its easy for you to scan your graph and attach it to your post, do that. But if its not easy to do that, just describe your graph in words. That is, explain how you labeled the axes of your graph, what the demand curve looks like, what the supply curve looks like, how you labeled the equilibrium price and quantity, any curve shifts, and what happened to equilibrium price and quantity as a result of the curve shift(s) (changes in demand and/or supply). [You will have to be able to explain how to draw a supply/demand graph on the first exam.]
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