After watching the video, create a discussion thread which answers the following questions: How does this movie clip apply to what you have read in Chapter 4? Why does the price of the hula hoop fall at first? How would you describe that in economic terms using the model of supply and demand? Why does it later rise? How would you describe that in economic terms again? What does this tell you about the free market? Can you think of another product whose price has changed like the hula hoop's did in the movie, for the same type of reason?
You also have to make two response posts in the discussion. In your response posts, please share your thoughts on what the initial post might be missing and how that "miss" might effect demand and/or price.
Your initial post is due by Wednesday 11:59PM. Your response posts are due by Sunday at 11:59PM.
Don't forget your netiquette! Your posts and comments should be thoughtful, respectful, and on topic. Also, your responses and posts should be in complete sentences, and include proper grammar and punctuation. Rules for discussion board posts and the rubric used to grade them can be found in the Discussion Board Instructions and Grading document.
Your posts in this discussion align with the following module learning outcomes:
Identify things which could shift a demand curve to the right or left
Identify things which could shift a supply curve to the right or left
Explain why surpluses push prices down while shortages drive prices up
Predict the impact of a change in demand or supply on the equilibrium price and quantity